ATTN BP Employees,
Interest rates for March, impacting retirees collecting their BP RAP benefits on July 1st, 2022, continue to raise rapidly. In an early April speech, Fed Governor Lael Brainard said the central bank needs to act “quickly and aggressively” to drive down inflation. She indicated that upcoming interest rate increases could be higher than the Fed’s traditional 0.25 percentage point bump. On the same day, San Francisco Fed President Mary Daly expressed her concern about inflation and suggested that higher prices are “as harmful as not having a job.” In a speech to the Delaware Chamber of Commerce the following day, Philadelphia Fed President Patrick Harker said higher interest rates are needed to help manage rising prices.
There’s an old saying, “one’s a dot, two’s a line, three’s a trend.” Based on these comments, it’s clear there is a trend among Fed officials. The Federal Reserve has indicated it plans to keep raising short-term interest rates to help manage inflation, which is at a 40 year high. You’re likely seeing the effects of inflation when buying gas or groceries, and you’ll notice it if you are shopping for a new or used car. The Federal Reserve’s job is to control inflation, and by raising interest rates, they hope to slow spending, bringing down consumer prices.
Interest rates directly affect the bottom line of your pension, having an understanding of the mechanics behind this can mean the difference between thousands of dollars, if not more at retirement. If you would like to learn more about how your pension is impacted by interest rates, please do not hesitate to contact one of our experienced financial advisors who specializes in knowing the inner working of your BP RAP plan. This service is free of charge for all BP Employees and Retirees.
To schedule a complimentary consultation with our team email email@example.com or call us directly at (877)739-6007.
Capstone Wealth Advisors
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