Higher Interest Rates are Great News for these Investments

FILE PHOTO: The U.S. Federal Reserve building is pictured in Washington

The Federal Reserve just left interest rates as is.

However, it does expect to hike again before the year is over, and fewer cuts next year. And while there was no hike, analysts believe the Fed will keep interest rates higher for longer.

One way to trade the news is with Treasury yields. According to CNBC, “Yields move inversely to prices. Investors can ladder bonds to diversify maturities and reinvest proceeds from issues coming due into longer-dated bonds.”

Another way to make some potential money from higher interest rates is with savings accounts and CDs.

Even money market funds may be worth the investment.  According to CNBC, “Rates on money market funds have also jumped substantially since the Fed’s rate-hiking campaign started. The Crane 100 Money Fund Index has an annualized 7-day current yield of 5.16% as of Sept. 19.” Some top, high-yielding funds include the Schwab Treasury Obligations Money Fund, which yields 5.06% and has an expense ratio of 0.34%.

There’s also the Fidelity Government Money Market Fund, which yields 4.98% and has an expense ratio of 0.42% at the moment.