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ROLE: A Fed Rate Cut Could Be Just Weeks Away-Here’s What It Means For Your Money
The Federal Reserve is likely to lower interest rates in mid-September, marking its first cut of the year [[1]]. This change will impact bank yields on savings, money markets, adn CDs, possibly even before the official proclamation [[1]].Currently, the best CDs are offering returns around mid-4% for months or even years, regardless of potential Fed cuts [[1]]. For accessible cash, high-yield savings accounts, money markets, and checking accounts currently offer up to 5%, but this rate is unlikely to last much longer [[1]].
Financial markets anticipate a quarter-point cut on September 17th [[1]].
Key Takeaways:
The Federal Reserve is likely to lower interest rates in mid-September, which would be its first cut of the year.
When the Fed rate changes, bank yields on savings, money markets, and CDs move as well-sometiems even before the central bank’s official announcement.
that’s why today’s best CDs are worth grabbing, guaranteeing mid-4% returns for months or even years-no matter what cuts the Fed makes.
For cash you need to keep accessible,you can still earn up to 5% with the best high-yield savings accounts money markets,and checking accounts. But that rate probably won’t last much longer.
