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Savers on fixed income ready for Fed hike
During her confirmation hearings to head the nation's central bank, Janet Yellen acknowledged something about the Federal Reserve's as-low-as-they-can-go interest rates.
"I understand savers are hurt by this policy," she told senators.
But the woman who would become the Federal Reserve board chair defended the rock-bottom rates as necessary for getting the economy back to normal. Yellen argued that savers, including retirees on fixed incomes, should want a healthy economy as much as anyone because they may want to work part time in retirement, or they may have children or grandchildren who need jobs.
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Still, millions of Americans who saved diligently over the years have been crying out for relief. Many have found themselves struggling, thanks to rates that have remained near 0% for years.
"Our firm has long been of the belief that artificially low interest rates have punished savers and retirees," says Samuel Scott, president at Sunrise Advisors in Leawood, Kansas.
The Fed could soon raise rates for the first time in nearly a decade. Here are 6 reasons retirees might celebrate.