Are CD Rates Rising?

Cd rates have been declining this year, this is unfortunate for many who are looking to invest in Cds. Many people wish the Federal Reserve would step in and raise the Cd rates. The three month Cd has fallen from .57% to 55% since last week, the six month Cd has dropped from .85% to .84%, the one year Cd has fallen from 1.08% to 1.10%, and the rest have declined accordingly. This part of the recession is starting to affect everyone, not just the banks. The Federal Reserve hasn’t hinted at any way to raise Cd rates.

The economy is struggling to remain stable during this time. The Fed will only continue to lower the rates on Cds in an effort to pull banks out of recession more quickly. When stabilization becomes more apparent the Fed will raise Cd rates to keep the economy from reaching inflation. Since the economy remains in recession the rates and interest will only remains low for now.

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