With wars abroad, stubborn inflation, and shifting interest-rate expectations, the headlines can feel overwhelming, and it’s natural to wonder what this means for your financial future. As always, we’re here to help you sort through the noise and focus on what truly matters: your personal financial goals.
During its June meeting, the Federal Reserve chose to keep interest rates unchanged—a decision shaped by persistent inflation, global conflicts, and economic uncertainty. While there had been hopes for rate cuts this year, current conditions and geopolitical risks have made that unlikely in the near term.
Tariffs in particular can both raise prices and slow growth—putting the Fed in a difficult position.
The conflicts in the Middle East, if they escalate further, could push oil and energy prices even higher—fueling inflation across the board. While the situation hasn’t yet triggered broad market disruption, it has introduced a level of volatility that complicates rate decisions.
In short: the Fed isn’t likely to make a move unless the outlook becomes more stable. That’s why we’re seeing fewer predictions for cuts this year.
In most cases, no.
If you’re more than five years from retirement, chances are your plan still centers around a growth-oriented investment strategy. While the past is not a guarantee of future performance, markets have historically performed well through similar periods. As a long-term investor, you have time on your side.
However, if you’re nearing retirement—or already there—the story is a little different.
We often say you can’t predict the market, but you can predict when you’ll need access to your money. If your timeline is short, your investments should reflect that. Now could be a smart time to move funds into income-producing or lower-risk vehicles, especially since the market has rebounded from earlier-year lows and interest rates are elevated. This presents a window of opportunity to lock in higher yields.
The best vehicle for your money depends on your goals, but here are a few options worth exploring:
CDs and Bonds – Lock in current interest rates while they’re still high
Money Markets and Treasuries – A good option for short-term needs
Fixed or Income Annuities – Ideal for those looking to generate consistent income
If rates fall in the future, today’s bond purchases could look even better in hindsight. But regardless of rate fluctuations, these options help protect your short-term funds while keeping your long-term strategy intact.
Depending on your personal outlook, you might feel optimistic—or deeply concerned—about where things are headed. But politics aside, here’s what history teaches us: over the long run, the market works. Even with tough times, patient investors tend to be rewarded.
And there’s good news. According to BlackRock1:
May 2025 was the second-best May for U.S. stocks since 1950.
Historically, inflation tends to trend lower in the second half of the year (potentially something to look forward to).
When the Fed funds rate exceeds inflation (as it does now), the market has historically performed well after that.
So, the conditions of the economy may not be as dire as they seem, and they’re likely to generate some positive results over time.
A good financial plan is built for the long haul, not just today’s headlines. But if you’re wondering how current conditions might affect your short- or mid-term goals, we’re here to help. We can review your strategy with you and ensure you’re in the best position to accomplish your unique objectives. Click here to call or email us.
1 https://www.blackrock.com/us/financial-professionals/insights/student-of-the-market