How would interest rate cuts affect your high-yield savings account?

Apr 2, 2024
With the Federal Reserve signaling it plans to cut rates up to three times this year, interest payments, and interest charges, are likely to drop.
While there are upsides for consumers when interest rates come down, high-yield savings accounts will likely offer lower rates too. Above, Federal Reserve Chair Jerome Powell.
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The Fed's Beige Book offers a more colorful look behind the stats

Mar 7, 2024
The latest edition includes comments from community bankers, real estate brokers, farm-implement suppliers—you name it.
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How independent are Fed officials from the politicians who appoint them?

Mar 6, 2024
Biden has mostly shied away from publicly criticizing the Fed chair, while Trump tweeted about the Fed hundreds of times while in office.
It’s a mistake to think the Federal Reserve is completely immune from politics, says Sarah Binder at George Washington University. Above, Fed Chair Jerome Powell testifies at a House Financial Services Committee hearing.
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Some investors are eyeing riskier bets following rate cut hints from the Fed

Dec 15, 2023
The assumption is that the economy will chug along and that borrowing costs will fall. But they might not. What makes these riskier stocks attractive?
Since the Fed hinted at possible rate cuts next year, some investors are buying up risky stock.
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Federal Reserve losses contribute to federal deficit

Oct 24, 2023
When the central bank makes money, it hands it to the Treasury. But now it's losing money as it pays interest to banks on their deposits.
The Fed is, among other things, a bank for banks, and it pays interest to those banks. Those interest rates have gone up. Above, the Eccles building, which houses Fed governors' offices.
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Fed chair Powell's latest speech hints at caution regarding interest rates

Oct 20, 2023
Jerome Powell spoke Oct. 19 and said the Federal Open Market Committee would be "proceeding carefully."
“Given the uncertainties and risks, and given how far we’ve come, the committee is proceeding carefully," Powell said.
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Trying to boost diversity over margaritas at the Fed's Jackson Hole Symposium

Aug 9, 2023
There's been a push to make the annual gathering more reflective of the country's demographics.
Every August, economists and central bank officials gather for the Jackson Hole Symposium. In recent years, there have been efforts to diversify its attendants.
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We're in the stubborn phase of inflation cooling

Jun 13, 2023
The latest data shows inflation is well below its peak of more than 9% a year ago. But there’s a ways to go before the Fed reaches its 2% target.
There’s still a ways to go before the Federal Reserve reaches its target of 2% inflation.
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Fewer cranes on the horizon? Banking tumult could slow nonresidential construction

Mar 28, 2023
Smaller and regional banks are major lenders not only for office construction, but also building projects like hospitals, educational institutions and ports.
Cranes on a construction site in southeast Baltimore work to build office space. Spending for non-residential projects is up nearly 16% in the past year, according to the Census Bureau, and that is due in part to rising building costs.
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Why CDs are music to banks' ears right now

Mar 27, 2023
Certificates of Deposit help banks bring in cash that they can use to make money by lending it at higher rates. Depositors may be looking to CDs as interest rates rise.
According to the Federal Reserve, the amount invested in large CDs — specifically, with accounts holding $100,000 or more — has gone up nearly 44% in the past year.
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