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Kirkland
  |     |   377 posts since 2014
I do expect we will get to 5.75% as the immediate terminal rate. And if James Bullard would have been around next year, we would eventually go even higher, to 6.25%. As James Bullard said early in 2023, it looks like a year of disinflation. But hold on, did you see that GDP for the 2nd quarter. :) The economy is holding up, corporate results have been good, and spending continues! However, the wealth management advisory business is hurting, they are desperate to get and control your cash. 3 - 5 year brokered CD rates are being controlled too low, don't buy! They should be higher, not lower. Keep liquid, earning 5%+ and try to take advantage of any higher longer direct deals that come along later this year. For fun, I am posting my November 2022 post here now. Back then, we were only earning 3.5% liquid. Life is good! :)
Kirkland | Nov 29, 2022 | 140 posts since 2014
Patience. On the 5 year CD's we peaked around 3.5% in late June, our 2nd peak was 5% in early November, and I am looking for our 3rd peak next year possibly as high as 5.75%, which I heard is the speculative immediate terminal rate. Not to say we won't go higher than that later. None of the long term brokered CD's are worth buying right now. The curve is hugely inverted. The 12 month treasury auction on Nov 23rd yield was 4.75%. In the near, for short term CD's, we are going higher. Stay liquid in savings earning 3.5% also going higher (to 4% when Fed raises in mid Dec). For now, you can only afford to buy CD's, ladder on the shorter end, buy 1 and 2 and 3 year expecting non-callable 5% + yield for 12/24/36 months to be offered soon.
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