Were inflation to heat back up, the Fed could continue raising rates, but “I think the risk of that happening right now is pretty low,” says Arnott.

As for your long-term money, you’re likely better off in assets, such as stocks, that fluctuate more than cash, but that tend to deliver higher returns over time. That’s because even though cash looks attractive now, it’s historically done a lousy job keeping up with inflation.

“If you’re looking at, say, your 401(k) or retirement portfolio, I don’t think it makes sense to hold any type of cash in that type of account,” says Arnott.

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