Why a Federal Reserve rate hike could be a ‘rare win’ for your retirement money
Why a Federal Reserve rate hike could be a ‘rare win’ for your retirement money. Jakub Porzycki | Nurphoto | Getty ImagesAmericans' inflation-adjusted incomes rose and poverty declined in 2025, according to new Census Bureau data released Tuesday, as the Federal Reserve meets to decide whether inflation still requires higher interest rates.
What happened
"Consequently, the Bank of Japan has gained a free hand to proceed with rate hikes. " BOJ board members have also made hawkish comments, leaving open the possibility of accelerated rate hikes. "Data doesn't yet support a regime shift," he said, so there is "insufficient visibility to justify a faster pace of rate hikes. There may be better savings yields, but beware rising credit-card rates 6% to $87,460 in 2025, new Census Bureau data shows, as the official poverty rate declined to 10.
The Fed is meeting this week to decide whether inflation still warrants higher interest rates. The poverty rate fell by a nearly half-point to 10.
The wider picture
Treasury Secretary Scott Bessent celebrated the data, which were released as he was testifying to a House committee about the economy. The average rate for new 30-year fixed-rate mortgage rose above 7% last week. The decline in poverty appeared to be concentrated among families with children and working-age families, rather than among retirees. The measure known as the "Big, Beautiful Bill" cut taxes on some working families but paid for it in part by reducing federal outlays through tightening restrictions on parts of programs for low-income people.
Meanwhile the Fed is on the precipice of raising its benchmark short-term interest rate. The Fed's tool to fight inflation — interest rates — is a blunt instrument. By raising rates, the Fed raises borrowing costs across the economy. The Fed will announce its rate decision Wednesday afternoon.
What has been reported
Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuKey PointsMost respondents expect the BOJ to hike this week by 25 basis points, citing higher inflation, higher wages, and pressure from the U. A hike would signal an acceleration of the tightening cycle, faster than the six-month interval the Bank has been following. Toru Hanai | Bloomberg | Getty ImagesThe Bank of Japan is likely to raise rates to 1. Japan's headline inflation rate for July hit its highest this year, at 1. S. has been vocal about Japan continuing its rate-hiking cycle, pressuring Prime Minister Sanae Takaichi's preference for an easy monetary policy and an expansionary fiscal policy.
"The Trump administration has effectively checked any potential move by a Takaichi administration to block the Bank of Japan from raising interest rates," said Takahide Kiuchi, executive economist at Nomura Research Institute and former BOJ policy board member. Carlos Casanova, senior economist for Asia at UBP, expects the BOJ to stand pat for now, though he thinks it is behind the curve and eventually expects two 25 basis point hikes every six months. " Asked which BOJ board members are most likely to dissent on a hike, around a third of respondents named Toichiro Asada and Ayano Sato.
What happens next
Homin Lee, senior macro strategist at Lombard Odier, said the BOJ's hawkish shift will help keep the yen stronger than 160. Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuKey PointsReal median household income rose 2. Treasury Secretary Scott Bessent highlighted the report during House testimony. American flag is seen displayed at the Time Square in New York City, United States. 6% to $87,460 last year, the Census Bureau reported as part of a suite of data releases Tuesday. The poverty threshold for a family of four last year was $32,970.
The Census Bureau data are "several inconvenient facts" for the Trump administration's political opponents, he said.
The report has been compiled by The Daily Waves using information reported across cnbc.com. Details are presented according to the information available at the time of publication and may change as authorities, organisers or other relevant parties provide updates.