Inflation is cooling. Make these 3 smart moves now.

Inflation has been problematic for millions of Americans over the last two years. But a new report released Tuesday showed it growing at the slowest pace since March 2021. Specifically, the Consumer Price Index grew at an annual rate of 4% in May, according to the Labor Department. That's slightly below the 4.2% annual bump many economists had predicted.

The news follows a better-than-expected jobs report released earlier this month, giving hope to many that the Federal Reserve will keep interest rates untouched when they officially meet on Wednesday. If they keep rates as is, it could imply that the worst is over and that inflation truly is, finally, cooling off. If inflation is cooling, Americans would be wise to make some smart financial moves today. While the below suggestions are generally advisable in any economic climate, they can be particularly advantageous now.

Start by reviewing today's high-yield savings account options to see how much more money you could be earning.

3 smart moves to make with inflation cooling

While cooling inflation could provide relief for millions, there are some things savers should do now to capitalize on the still-high interest rate environment.

Open a certificate of deposit (CD) account

Interest rates on CDs, particularly those with shorter terms, are higher than they've been in years. In fact, you may be able to secure a CD with an interest rate of 5% or higher with no fees simply by shopping around online. That said, rates on CDs are tied to the larger rate environment so if the Fed stops raising interest rates, the rates on CDs will level off, too.

This makes now a great time to lock in a high CD rate. Unlike rates on other savings vehicles, those on CDs are locked in for the duration of the CD's term, regardless of what happens in the broader rate environment. So, for example, if you lock in a one-year CD with a 4% APY now — and rates drop toward the end of 2023 — you'll still be secured at the higher rate. 

So don't wait for any additional rate increases. If inflation is truly cooling this is where rates may have peaked. Take advantage before it's too late and get started with a CD here now.

Open a high-yield savings account

High-yield savings accounts, like CDs, have also experienced a resurgence in appeal due to higher interest rates. While rates aren't generally quite as high as what can be secured with a CD, it's still possible to find an account offering 12 times the rate a regular savings account offers. That said, unlike CDs, the rates on high-yield savings accounts are variable and will adjust based on the Fed's actions and any other economic headwinds. The rate you secure on a high-yield savings account today may not be the same one you secure tomorrow and it certainly won't be as high if you wait a few weeks or months while inflation (hopefully) continues to fizzle out.

While interest rates aren't expected to drop in tomorrow's meeting, they could stay the same, meaning your window to optimize your savings with one of these accounts is closing. So don't lose money by keeping it in a regular account. Get started with a high-yield savings account here now.

Meet with a financial adviser

It never hurts to meet with a financial adviser. But in today's economy, and the economy Americans have been living in over recent months and years, many would say it's vital. A trusted financial advisor can review your investments for opportunities for growth. And they can help you reduce any liabilities or items where you could be losing money. They won't be able to influence the larger rate environment or economy, but they could help you make sure that you're optimizing your investments as smartly as possible while things improve. Learn more here now.

The bottom line

Inflation has been problematic for millions of Americans for much of the last two years. With potential relief on the horizon, it's important to make smart financial decisions now in order to be prepared for the next major economic change. If inflation is finally leveling off, Americans should consider taking advantage of today's high interest rate environment by opening a CD or high-yield savings account. But they also shouldn't be shy about utilizing an expert like a financial advisor to guarantee that their savings and investments are secured as best as possible for the future.