Last Call For High Yields? Banks May Cut CD And Savings Rates As Inflation Cools

Reviewed By Reviewed By Published: Jan 5, 2024, 7:27pm Record-high yields on certificates of deposit—one bright spot for consumers amid high inflation—could taper off before 2025. The reason: a projected Federal Reserve rate cut that economists and analysts expect to see later this year. In recent months the on certificates of deposit, or CDs, and other savings products have reached highs not seen in more than a decade. As of January 5, some of the had yields of almost 6%. Much of that rate increase has been driven by the Federal Reserve’s inflation-fighting campaign of hiking the over the last two years. As in 2023, the Fed paused…