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Living with low interest rates Despite the tax reform and other changes that the Trump administration is pursuing, interest rates are very likely to remain low, and this will have a negative effect on retirees depending on CDs and bonds, as well as other older workers who are adjusting their portfolios in preparation for retirement, writes an economist on the Washington Times. "Granted, the Federal Reserve is raising interest rates. It has penciled in a 0.25% increase for its benchmark commercial bank overnight borrowing rate and three similar adjustments each year until those are 'normalized,'" writes the expert. "However, when the Fed last tightened credit conditions from 2004 to 2006, the benchmark rate peaked at 5.25%. This time Fed policymakers are aiming for about 3% by the end of 2019."

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