Federal Reserve issues sobering message to all US savers: Inflation won’t be under control until 2029
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Americans hoping inflation will soon stop eating into their savings have a sobering message from the Federal Reserve: The road back to its inflation target could stretch into 2029.
For anyone building a nest egg, the concern is simple: Your account balance can hold steady while the money inside it buys less.
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In its September projections (1), Fed officials put median inflation expectations, measured by the personal consumption expenditures price index, at 3.7% for 2026, 2.3% for 2027 and 2.1% for 2028. Only in 2029 does the forecast reach the central bank’s target of 2%.
That timeline also represents a setback from June, when officials projected a return to 2% in 2028.
The outlook for core inflation, which excludes food and energy, tells a similar story: 3.4% in 2026, 2.5% in 2027 and 2.2% in 2028, before reaching 2% in 2029. These are forecasts based on officials’ economic and policy assumptions, rather than a guaranteed timetable.
During his Sept. 16 press conference, Fed Chair Kevin Warsh put it bluntly (2): “The plain fact is that inflation is too high, and has been for too long.”
To bring inflation down, the Fed raised its benchmark interest rate target range by a quarter percentage point to 3.75%–4%.
But even if inflation follows the projected path, reaching 2% would still mean prices are rising. It would not undo the increases households have already absorbed.
And the damage to purchasing power extends well beyond the latest inflation surge.
According to the Inflation Calculator (3) put out by the Federal Reserve Bank of Minneapolis, $100 in 2026 has the same purchasing power as just $11.61 did in 1970.
That’s right. $100 became less than $12 — despite decades of efforts by the Fed to keep rising prices in check.
For savers, the danger is clear: If your savings grow more slowly than prices, your purchasing power shrinks.
You cannot control how quickly the Fed wins its inflation fight. But you can examine how your money is positioned for the years ahead.
Here’s a look at three time-tested strategies investors have used to help shield their wealth from inflation’s bite.
Own something the Fed can’t print
When it comes to preserving wealth and fighting inflation, few assets have stood the test of time like gold.
Its appeal is simple: Unlike fiat currencies, the yellow metal can’t be printed at will by central banks. This inherently limited supply can help it store value.
Gold is also considered the ultimate safe haven. It’s not tied to any one country, currency or economy, and in times of economic turmoil or geopolitical uncertainty, investors often flock to it — driving prices higher.
Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, has repeatedly highlighted gold’s role in a resilient portfolio.
“People don’t have, typically, an adequate amount of gold in their portfolio,” Dalio told CNBC last year. “When bad times come, gold is a very effective diversifier.”
Over the past five years, as inflation continued to chip away at the purchasing power of the dollar, gold has climbed 132%.
Other prominent voices see further potential. JPMorgan CEO Jamie Dimon has said that in this environment, gold can “easily” rise to $10,000 an ounce.
One way to invest in gold that can also provide significant tax advantages is to open a gold IRA with the help of Goldco.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it a compelling potential option for those wanting to ensure their retirement funds are diversified during rough economic times.
Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver.
If you’re curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today. Just remember that gold is typically best used as one part of a well diversified portfolio.
An income-producing inflation shield
Gold isn’t the only asset investors turn to during inflationary times. Real estate has also proven to be a powerful hedge.
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When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts for inflation.
Over the past ten years, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index (4) has jumped by 87%, reflecting strong demand and limited housing supply.
Of course, high home prices can make buying a home more challenging, especially with mortgage rates still elevated. And being a landlord isn’t exactly hands-off work — managing tenants, maintenance and repairs can quickly eat into your time (and returns).
The good news? You don’t need to buy a property outright — or deal with leaky faucets — to invest in real estate today. Crowdfunding platforms like mogul offer an easier way to get exposure to this income-generating asset class.
As a real estate investment platform offering fractional ownership in blue-chip rental properties, mogul gives investors monthly rental income, real-time appreciation and tax benefits — without the need for a hefty down payment or 3 a.m. tenant calls.
Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide for you. In other words, you gain access to institutional-quality offerings for a fraction of the usual cost.
Each property undergoes a rigorous vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.
Sign up for an account and browse available properties here to start investing today.
Another option is Lightstone DIRECT, which gives accredited investors access to single-asset multifamily and industrial deals.
Lightstone DIRECT’s direct-to-investor model ensures a high degree of alignment between individual investors and a vertically-integrated, institutional owner-operator — a sophisticated and streamlined option for individual investors looking to diversify into private-market real estate.
With Lightstone DIRECT, accredited individuals can access the same multifamily and industrial assets Lightstone pursues with its own capital, with minimum investments starting at $100,000.
Warren Buffett’s inflation playbook
Investing legend Warren Buffett knows a thing or two about navigating inflation, having managed Berkshire Hathaway’s stock portfolio through the double-digit inflation of the 1970s and developed plenty of insight into the types of businesses that can hold up when consumer prices surge.
In his 1981 letter to shareholders (5), Buffett pointed to two characteristics that can make a business especially resilient in an inflationary environment: The ability to increase prices easily and the ability to handle more business without requiring large amounts of new capital.
In other words, companies with strong pricing power and relatively modest capital needs can be better positioned to protect their profitability as costs rise.
That helps explain why the right stocks can serve as a long-term hedge against inflation. But Buffett has also made clear that you don’t need to be an expert stock picker to participate in the market’s growth.
“In my view, for most people, the best thing to do is own the S&P 500 index fund,” Buffett has famously stated (6). This approach gives investors exposure to 500 of America’s largest companies across a wide range of industries, providing instant diversification without the need for constant monitoring or active trading.
If you prefer that kind of hands-off approach to building wealth, Vanguard’s Digital Advisor puts the investing expertise of one of the world’s largest asset managers right at your fingertips.
It takes the guesswork out of investing by building a personalized portfolio for you using Vanguard’s well-known low-cost ETFs and mutual funds — then keeps things running smoothly with automatic rebalancing.
The platform also offers guidance on saving for retirement and lets you set additional goals as your life evolves.
It can even help you think through debt repayment strategies, potentially freeing up more cash to invest toward your long-term plans.
With a minimum investment of just $100, it’s an easy way to get started with professionally guided investing.
For every $10,000 in an all-index portfolio, you’ll pay approximately $15 to $16 per year.*
You can even test-drive the Vanguard experience with no advisory fees for the first 90 days.
*All investing is subject to risk, including the possible loss of the money you invest.
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Article Sources
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U.S. Federal Reserve (1); CNBC (2), (6); Federal Reserve Bank of Minneapolis (3); S&P Global (4); Berkshire Hathaway (5)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.