Will CD rates continue to pay high yields?

  • CD rates have been paying 5-6% APYs
  • Rates may dip towards the end of 2024
  • CD yields will start to pull back once the Fed is done raising rates
  • The CME FedWatch Tool speculates rates will be cut in the second half of 2024
  • CD rates could remain steady in the near term
  • Issuers decide the rate they want to pay for CDs
  • Short-term CD rates are affected by supply and demand of funds in the money market
  • Inflation is expected to come down to around 3% by the end of 2024

CD rates have been paying 5-6% APYs recently, but experts predict that rates may dip towards the end of 2024. Once the Federal Reserve is done raising rates, CD yields will start to pull back. The CME FedWatch Tool speculates that rates will be cut in the second half of 2024. However, CD rates could remain steady in the near term. Issuers decide the rate they want to pay for CDs, and short-term CD rates are affected by the supply and demand of funds in the money market. Inflation is expected to come down to around 3% by the end of 2024. Overall, it’s uncertain what exactly to expect in terms of CD rates in 2024, but getting a CD in the next few months may be a good idea to take advantage of current rates before they potentially dip.

Factuality Level: 7
Factuality Justification: The article provides information from various experts and sources regarding the potential future trends of interest rates and their impact on certificate of deposit (CD) yields. The experts offer different perspectives and opinions based on their analysis of the current economic situation and projections for the future. While the article does not provide concrete facts or definitive predictions, it presents a range of possibilities and factors that could influence CD rates. Overall, the article is based on expert opinions and projections, which may or may not accurately reflect future developments.
Noise Level: 7
Noise Justification: The article provides some analysis and insights into the potential future trends of interest rates and their impact on CD yields. However, there is a lack of concrete evidence or data to support the claims made by the experts interviewed. The article also dives into unrelated territories by discussing savings accounts and factors that affect short-term interest rates, which is not directly relevant to the topic of CD yields. Overall, while there is some analysis present, the article lacks scientific rigor and intellectual honesty.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the potential impact of future interest rate changes on certificates of deposit (CDs). It mentions that CD yields may decrease as the Federal Reserve transitions from raising rates to cutting rates in 2024. This could affect individuals who invest in CDs for higher yields.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article primarily focuses on the potential future changes in interest rates and their impact on CD yields. It does not mention any extreme events or significant disruptions in financial markets.
Public Companies: Bankrate (null)
Private Companies: CDValet.com,TGS Financial,Financial Wellness Strategies,University of New Haven’s Pompea College of Business
Key People: Greg McBride (Chief Financial Analyst at Bankrate), Bryan Johnson (Chartered Financial Analyst and CFO at CDValet.com), Jim Hemphill (Certified Financial Planner at TGS Financial), Bobbi Rebell (Certified Financial Planner and Founder of Financial Wellness Strategies), Demissew Diro Ejara (Associate Professor of Finance at the University of New Haven’s Pompea College of Business)

Reported publicly: www.marketwatch.com