The past 18 months have been anxiety-inducing for many investors. The Federal Reserve's aggressive strategy to tame a four-decade high in inflation quickly pushed interest rates to levels not seen in more than 15 years.
As uncertain as these times may feel, I'm encouraged by two truths. First, the Fed's efforts are working. Since reaching a near-term peak of 9.1% in June 2022, inflation has fallen by nearly two-thirds, to 3.1% in June 2023. Second, bonds and cash investments are offering meaningful income after more than a decade of rock-bottom yields.
Of course, there may be bumps along the way as the full economic impact of the Fed's actions becomes clear. My best advice is to stick with time-tested strategies: Diversify your holdings, rebalance regularly, and don't take on more risk than is right for you.
If you're unsure about how inflation and higher interest rates could affect your situation, don't hesitate to reach out to your Schwab financial consultant. We may not know exactly where interest rates will land, but we're here to help you navigate the road ahead.

Charles R. Schwab
Founder & Co-Chairman