Fed's interest rate hikes caused CD rates to rise, but hinted rate cuts may lower them in Fall 2024.

Fed's inflation control measures led to interest rate hikes, benefiting savers with higher CD rates. However, rapid recent inflation decline and hinted rate cuts imply that CD interest rates may fall in Fall 2024. CD rates reached peaks in August 2024 (5% APY) due to Fed hikes, but a rate cut could reduce these returns. Comparing rates, term lengths, and considering online banks for competitive rates is advised.

August 12, 2024
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