CD Rates Continue to Rise Despite Federal Reserve Interest Rate Hold
Despite the Federal Reserve maintaining the federal funds target range at 3.75%–4.00% in late October, Certificate of Deposit (CD) rates across the United States have continued to climb. Data from CD Valet indicates that rate increases outnumbered decreases by a ratio of approximately 7 to 1 during the first week of November, with over 1,000 rate hikes recorded. The market is seeing an influx of high-yield options, as CDs offering at least 4.00% APY rose significantly from mid-October to early November. With a flat yield curve and a 72% probability of a Fed rate hike in December according to CME FedWatch, savers are currently weighing the benefits of locking in long-term yields against the potential for higher returns through shorter-term reinvestment.
Topics: Bank yields Certificate of Deposit (CD) rates Federal Reserve Monetary Policy
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Part of the story CD Rates Rise as Median Yield Climbs to 3.35% (2 articles)