Since December 2008, interest rates set by the central bank have been virtually zero, leading to low CD rates and even lower savings account and money market account rates.
Last week’s meeting of the Fed was generally interpreted as bullish on the economy and bolstered confidence that an interest rate increase could indeed come this year.
The Fed is likely to modify the phrasing of its policy statement to signal that an increase in the targeted federal funds rate is not a “considerable time” off in the future.
Fed Chair Yellen discusses weakness remaining in the job market and how it affects interest rates.
CD rates are still at historical lows all over the country, but some cities enjoy higher rates than others.
It may not be a “recovery summer” but the Federal Reserve’s Beige Book shows broad but measured growth across many industries and areas of the country.
The opposite side of today’s low CD rate coin can be found in the ’80s when interest rates were high — on everything.
The Fed sticks with a target for the benchmark rate of between zero percent and 0.25 percent. That’s nice for borrowers but not for savers.
The Federal Reserve says it will keep the federal funds rate near zero percent until joblessness drops.
According to the minutes from the October meeting, the FOMC discussed how to effectively communicate the path of interest rates and additional asset purchases.