Advertising Disclosure
  1. Home
  2. Community
  3. Ask
  4. Rate Pause?

Rate Pause?

jjflyman
  |     |   17 posts since 2018

I'm see a lot of articles prediction the FED to pause on the rare increases because of the banking problems. Any thoughts?

  Post an answer
3


Answers
JeffinEasternFL
  |     |   744 posts since 2020
My thought is for us savers: that sux! 50/50 chance of increase this time Fed meets? But, hopefully we'll still some rate increases near-term, if not this month, hopefully soon after. Though those 50 bps hikes are probably close to zero chance now. 
Near-term: banks want deposits to shore up their ledgers so short-term rates are gonna go up for us, but, mid to longer term (3-5+ years increases are not as common but, there are a few and I'd grab 'em if you are wanting). 

Me? I'm locking up Jumbo CDs in every year maturity CYs '24-'28 at 5% APY (or slightly higher) and goin to play more golf once that's done!
Reply
5
GH1
  |     |   1,053 posts since 2017
I think the fed needs to stand as they said they would rate hikes for the rest of the year. 2 or 3 banks being managed bad and taking millions in bonuses while bank failing. This is not a reason for the fed to change course. .25 is on the table. Clawbacks of the pay from bad ceos should happen. Those banks invested in so many risky startups. And the risk failed. The fed can handle these 3 failures and keep moving . by the end of this year yes pause in play. So everyone should start looking at what makes them happy long term. And start locking down
Reply
6
MY2CENTSWORTH
  |     |   436 posts since 2016
I agree that the Fed should maintain it's stance and while a half basis point is probably not going to happen I think they need to hang tough with the quarter point or the general consensus will be that things are much worse in the financial circle than they are. The market has already priced in the quarter point and inflation hasn't declined in my neck of the woods. I know it's said that one bad apple can spoil the whole barrel and that phrase is often used to explain that an isolated incident of misconduct is not necessarily representative of the entire industry, but there needs to be someone held accountable at those troubled banks after determining just what was going on and to put a stop to it.
Reply
3
Marfa
  |     |   68 posts since 2022
A .25% rate hike and likehood of more to come !
Reply
3
anonlol
  |     |   178 posts since 2016
they have to stay the course if only to save face with how wrong they were about inflation being transitory and inflation is no where near corrected nor the two jobs available for each applicatant left unfilled.
Reply
2
NFO
  |     |   66 posts since 2022
They might only do a quarter, but whether or not they pause is only a blip in time. If they need to keep raising going forward, they will. The rate jump we'd been hoping for has happened. If you aren't diving in now with at least some of your money, you're missing out. I've bought several brokered CDs recently north of 5% (non callable).
Reply
2
Sardonic
  |     |   34 posts since 2022
What's the best brokerage for buying the brokered CDs?
Reply
3
betaguy
  |     |   180 posts since 2022
sardonic.. fidelity or vanguard
Reply
5
Sardonic
  |     |   34 posts since 2022
@betaguy Thank you. I'll probably go with Fidelity.
Reply
2
Ally6770
  |     |   4,292 posts since 2010
Just an opinion, but I think it will go up 1/4. With a 1/2 people would panic thinking as they would if it was zero and panic. 1/4 would still fight inflation and would be, in my opinion, a better choice. But I am not Powell.
Reply
2


The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.