High interest rates kill the stock market and individual 401k accounts. Lost funds exceeds the poultry interest income.
401k accounts typically offer a variety of funds, providing the opportunity to shift into bonds for those who are actually aware of just what the impact of Fed rate increases can be. Allowing oneself to be a sitting duck, leaving all your 401k investment options in heavily stocks-oriented growth funds when you’re about to retire is not the smartest thing anyway, such individuals should be scrubbing off risk in favor of stability if retirement looms in the near future.
If you are retired you should have most of your retirement money outside the stock market. The portion of your retirement money in the stock market should be there as a long-term investment ... so for that money, who cares what happens in the stock market over the course of two weeks, two months, or even two years?