The Fed’s new era begins. Here’s what it means for your money | CNN Business

The Federal Reserve may have a new chairman in Kevin Warsh, but it still has to balance its old dual mandate: Lower rates to boost the economy when the labor market is struggling, or raise rates to cool economic activity when inflation is considered too high. Well, the job market seems to be doing better than expected. But inflation is now at its highest level (4.2%) in three years — and double the Fed’s oft-stated target of 2%. Nevertheless, the Federal Reserve on Wednesday opted not to raise rates. But nine Fed officials penciled in at least one rate hike this year. Whether that actually happens remains to be seen. But in the meantime, you can take steps now to improve what you earn on your savings and pay on your debts. The average bank savings yield was just 0.61% as of mid-June, according to Bankrate. You’ll do much better putting your money in one of the options below, although for the first time in a few years it will be harder to find rates that handily beat inflation. You’re more likely to see yields on par with or slightly below the latest inflation reading. Nevertheless, they still can do a lot to limit inflation’s damage. Online high-yield savings accounts: Fo