Inflation is cooling. Take these 3 smart steps now.

Inflation has been problematic for millions of Americans over the past two years. but A new report It was rising at the slowest pace since March 2021, published on Tuesday. Specifically, according to the Labor Department, the consumer price index increased at an annual rate of 4% in May. That’s slightly lower than the 4.2% annual bump many economists had predicted.

Following the news A well-anticipated work report released earlier this month, has given many hope that the Federal Reserve will keep interest rates unchanged when it officially meets tomorrow. If they keep rates as they are, it could mean the worst is over and inflation has indeed finally cooled. With inflation cooling, Americans would be wise to make some smart financial moves now. While the tips below are generally advisable in any economic climate, they can be especially helpful now.

Start by reviewing today’s high-yield savings account options to see how much more money you can earn.

3 Smart Steps to Cool Inflation

While cooling inflation may be a relief for millions, there are still some things savers should do now to capitalize on the high interest rate environment.

Open a certificate of deposit (CD) account

Interest rate on CDsEspecially with those Short term, have been more than they have been in years. In fact, you may be able to secure a CD with interest rates 5% or more with no fees Only by shopping online. That said, CD rates are tied to the broader rate environment so if the Fed stops raising interest rates, CD rates will also stop.

This makes now a great time to lock in higher CD rates. Unlike rates on other savings vehicles, those on CDs are locked in for the life of the CD, regardless of what happens in a major rate environment. So, for example, if you lock in a one-year CD with a 4% APY now — and the rate drops at the end of 2023 — you’ll still be protected at a higher rate.

So don’t wait for additional rate hikes. This is where rates could peak if inflation really cools. Take advantage of it before it’s too late. Now start with a CD here.

Open a high-yield savings account

High Yield Savings AccountLike the CD, Reason has also experienced a resurgence in appeal High interest rates. Although rates are usually not as high as can be secured with CDs, it is still possible to find an account offer 12 times the rate which offers a regular savings account. That said, unlike CDs, high-yield savings account rates are variable and will adjust based on the Fed’s actions and other economic headwinds. The rate you secure today in a high-yield savings account may not be the same rate you secure tomorrow, and it certainly won’t be as high if you wait a few weeks or months while inflation (hopefully) continues.

While interest rates aren’t expected to drop at tomorrow’s meeting, they are likely to stay the same, meaning your window to optimize your savings with one of these accounts is closing. So don’t lose money by keeping it in regular account. Start now with a high-yield savings account here.

See a financial advisor

It doesn’t hurt to meet with one Financial advisor. But in today’s economy, and the economy Americans have been living in in recent months and years, many would say it matters. A trusted financial advisor can review your investments for growth opportunities. And they can help you reduce any liabilities or items where you might lose money. They won’t be able to influence the larger rate environment or the economy, but they can help you make sure you’re optimizing your investments as smartly as possible when things improve. Learn more here now.

Bottom line

Inflation has been a problem for millions of Americans for the past two years. With potential relief on the horizon, it’s important to make smart financial decisions now to prepare for the next big economic shift. When inflation finally hits, Americans should consider taking advantage of the high interest rate environment by opening a CD or high-yield savings account. But they also shouldn’t shy away from using an expert like a financial advisor to guarantee their savings and investments are as future-proof as possible.