Will interest rates go up some more, which will bring more losses to bond funds when the Fed starts tapering Quantitative Easing? I don’t know
. Nobody knows
. My argument for CDs wasn’t based on predictions. CDs hold up well even when interest rates drop or stay the same. It’s not the same as parking in short-term bonds and earning a lower yield while waiting for higher rates, which may or may not come.
Now that interest rates are already up, is the argument for CDs less compelling than a few months ago? When Will CD Rates Go Up?