DENVER — Last week, Federal Reserve Chairman Jerome Powell announced the decision not to raise interest rates. It was not surprising to many economists and financial experts, who predict the Fed will wait until the economy stabilizes before making changes.
"There's a tremendous amount of uncertainty around tariffs and their impact on the U.S. economy," financial advisor Bruce Allen, from Bruce G. Allen Investments, LLC, said.
Despite that, Allen said the decision to keep interest rates the same does not necessarily mean the economy is in bad shape.
"He [Powell] referred to it as, The U.S. economy is growing and growing well. Labor markets are in very good shape. And we're seeing significant progress on inflation," Allen explained.
Recently, President Donald Trump called on the Federal Reserve to cut interest rates. Last week, Powell said President Trump's request "doesn't affect doing our job at all."
Allen said that moment struck him.
"You could see the markets move almost immediately," Allen said. "Within seconds the U.S. dollar jumped significantly against all of our trading partners. And what that means is that the U.S. is regarded as a highly functioning economy, as long as Jerome Powell has complete independence."
There are some ways these higher interest rates can help Coloradans earn more money.
Consider putting your money into a high yield savings account to help with short-term goals, Bankrate advised. If the Federal Reserve lowers rates later this year, rates for high yield savings accounts will fall too. It's important to remember that everyone's financial situation is different, so it's important to talk with a financial adviser or other professional before making these decisions.
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