The Fed Funds Rate is Unchanged at 2.25 to 2.50%; Savings And CD Rates Likely to Firm
Image Courtesy: The Wall Street Journal

The Fed Funds Rate is Unchanged at 2.25 to 2.50%; Savings And CD Rates Likely to Firm

The Federal Reserve concluded its 2-day June meeting leaving the Fed Funds rate unchanged.    As it tries to remain independent of an unrestrained Executive branch that is compaigning for sharp cuts, it removed the word “patient” from its rate outlook.   While the Fed has not committed to a July cut, eight members polled indicated that the next move will be down while one indicated that it may be up.

Online savings rates continue to be attractive and will likely firm in the wake of the Fed’s decision today.   One-year CD rates offer a nice premium over the best savings rate and could be a good place to put much of the money that you may want to keep out of other assets and do not expect to need to access over the next 12 months.

Ari Socolow
Ari Socolow: Ari Socolow is the Chief Economist and Editor-in-Chief at BestCashCow. He is particularly interested in issues relating to financial literacy and bank transparency. Since co-founding this website in 2005, Ari has been frequently cited in the media as an expert on local and national savings accounts, CD products, mortgage and loan products and credit card rewards products.

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