Inflation has been high for years now, and while it's decreased quite a bit from its peak of 9.1% in June 2022, it's still below the Federal Reserve's target goal of 2%. To move the needle and curb spending further, the Fed has kept interest rates paused at a 23-year high at its last three meetings. While that's bad for consumers using credit cards, mortgages and loans, as higher rates mean paying more in interest on the money borrowed, it's a boon for savers, resulting in hefty interest rates on savings accounts and certificates of deposit (CDs). What goes up must come down, though, and at some point, the Fed is likely to make rate cuts once inflation is under control. While the Fed rate doesn't directly impact the rates on savings accounts and CDs, the two generally move in the same direction. So the question remains: How long will these high CD rates last? And if the Fed does cut rates, how far will CD rates have to fall? Find out the best CD options available to you today
Inflation has been high for years now, and while it's decreased quite a bit from its peak of 9.1% in June 2022, it's still below the Federal Reserve 's target goal of 2%. To move the needle and curb spending further, the Fed has kept interest rates paused at a 23-year high at its last three meetings.
'The risks are balanced with regard to policy adjustments, and they plan to execute in a measured fashion,' says Jeff Krumpelman, chief investment strategist and head of equities at Mariner Wealth Advisors. 'They can cut, but they can take their time doing so.'Explore your top CD options online now.Expect a bigger fall by the end of the yearIf inflation trends downward in the future and the Fed stays on track with its three rate cuts, experts say a 0.
Inflation Interest Rates Savings Accounts Certificates Of Deposit CD Rates Federal Reserve
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Forex Today: The Fed, the whole Fed and nothing but the FedThe Greenback managed to maintain its multi-session constructive bias well and sound and propel the USD Index (DXY) back above 104.00, albeit ephemerally.
Read more »
Fed's Williams: Outlook is uncertain, Fed must be data-dependentFederal Reserve (Fed) Bank of New York President John Williams said on Thursday that the Fed must be data-dependent as the outlook remains uncertain, per Reuters.
Read more »
Why do short-term CDs have higher rates than long-term ones right now?In a historic reversal, short-term CDs often have higher interest rates than long-term ones right now. Here's why.
Read more »
Have short-term CD rates peaked? Here's what experts sayThanks to inflation and the Federal Reserve's moves against it, interest rates are high. For consumers with savings and certificate of deposit accounts (CDs), that has meant abnormally high APYs — and interest earnings — for much of the last two years. The trend has impacted all CD terms, but short-term CDs, in particular, have seen rates skyrocket. In fact, short-term CD rates have actually been higher than those on long-term ones — the opposite of how CDs traditionally work. This won't last forever, though. And with the Fed indicating rate cuts could be coming soon, the days of sky-high short-term CD rates may be numbered as well. That's why it's important to know what experts have to say about short-term CD rates. Are you considering opening a CD now? See what short-term rate you could lock in here today.
Read more »
FOMC signals cuts coming, just not yetThe Federal Reserve (Fed) left policy rates unchanged, as expected.
Read more »
Citi expects Fed to start cutting rates in June after soft PCE printCiti expects Fed to start cutting rates in June after soft PCE print
Read more »