Federal Reserve Maintains Interest Rates, Predicts Cuts by June

The Federal Reserve's decision to hold interest rates steady signals potential rate reductions in the coming months, impacting savings strategies.

The Federal Reserve has held the federal funds target interest rate steady at 5.25% to 5.50% since July 2023, with anticipated cuts by June 2024.
Financial experts advise utilizing CD ladders to lock in high rates before expected decreases, offering a strategic savings approach amidst fluctuating rates.
Short-term CDs, particularly those with terms of 12 months or less, are currently offering higher interest rates than long-term CDs due to an inverted yield curve.
Digital banks and online accounts are providing the best CD rates as of March 22, 2024, with APYs significantly surpassing the FDIC’s national average.
Savers are encouraged to consider various short-term CD lengths and other savings alternatives like high-yield savings accounts and money market accounts, depending on their financial goals and rate outlook.