On Wednesday, June 14, the Federal Reserve announced a pause in interest rate hikes for the first time since March 2022. The decision comes after promising economic indicators show that relief from historic inflation may be coming.  

Inflation Falls from Peak 

In a good sign for consumers, the Bureau of Labor Statistics announced on Tuesday that the Consumer Price Index rose more slowly than anticipated for the month of May. Meaning that while inflation is still persistent, the rate at which it is increasing is easing. The Consumer Price Index (CPI), a metric that measures the average change of prices paid by consumers for goods and services, was 4% for the year ending in May. 

Inflation has slowed for 11 consecutive months, and the CPI has dropped from its peak of 9.1% in June 2022. The CPI was more than doubled at this same time last year, at 8.6%. When looking at monthly change, prices increased by 0.1% from April to May, less than the 0.2% predicted by economists.  


While these are welcome developments, the pause is largely regarded as a chance to assess the effects of the previous rate adjustments and determine whether they were enough to continue the downturn or if more intervention is required. Inflation remains well above the Fed’s goal of 2%, and the interest rate forecast for the year indicates that at least two more rate hikes are in store for 2023.  

With the future outlook uncertain, now may be the time to revisit your strategy to take advantage of current rates. Please get in touch with your advisor at FIRM with any questions or to discuss planning for your financial goals. 


If you’ve been thinking about ways to save on medical expenses, now may be the perfect time to open a Health Savings Account (HSA). Thanks to persistent inflation, the IRS recently announced historic bumps to contribution limits for HSAs, making planning for health savings more beneficial than ever!

What is an HSA?

Established in 2003 as part of the Medicare Prescription Drug, Improvement, and Modernization Act, Health Savings Accounts (HSAs) are a type of medical savings account with tax advantages. Individuals contribute pre-tax income to savings accounts that may be used to pay for qualified medical expenses. Funds in an HSA roll over from year to year, meaning it is possible to establish significant reserves for future medical costs while saving money by lowering your taxable income.

HSA funds can be used for a variety of qualified medical expenses, including office visits, dental care, eyeglasses, over-the-counter medications, and more. Funds may even be used for costs related to healthcare, like transportation expenses.

Who Qualifies for an HSA?

HSAs are available to those enrolled in High-Deductible Health Plans (HDHP). HDHPs are defined as a plan where the deductible is higher than the average, as determined by the IRS. For 2024 an HDHP includes any plan “with an annual deductible that is not less than $1,600 for self-only coverage or $3,200 for family coverage, and for which the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $8,050 for self-only coverage or $16,100 for family coverage.”

In addition to being enrolled in an HDHP, you may not be enrolled in Medicare and must not be claimed as dependent on someone else’s tax return.

Contribution Limit Increases

For 2024 the IRS has raised the contribution limit for an individual to $4,150, an increase of $300 from the previous year, and $8,300 for family coverage, an increase of $550 from 2023.  These amounts represent the largest yearly adjustments since the accounts’ inception and reflect rising healthcare-related expenses due to ongoing inflation.


HSAs can provide advantages in both the short term, by lowering your taxable income, and in the long term, by helping establish a cushion for future medical expenses. Increased contribution limits make HSAs more beneficial than ever. If you have any questions about HSAs or tax-advantaged medical savings accounts, please contact your advisors at Bowman & Company. We are happy to help!