June Fed Meeting Recap

milty
  |     |   1,689 posts since 2018

Ken wrote, "The ideal time to buy a CD used to be when long-term rates reached a peak . . . However, today’s rate environment is different."

This is indeed an understatement. The correct statement is that this entire rate cycle, starting in March 2022, has been different with short-term and liquid rates outpacing longer-term rates. This is a historical anomaly versus the last 60 some years where traditionally the longer term rates yielded a better return than the FFR. I suggest the reason was the financial market's influence based on that the Great Recession's rates were now supposed to be the new normal. I don't believe this influence has faded so one should keep a close on events effecting that 1st rate drop if one is considering shifting shorter-term to longer-term.



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