Articles
Selected category: Savings
Federal Reserve Moves Fed Funds Rate Down by 25 Basis Points to a 4.50%-4.75% Range
The Federal Reserve has ended its November 2024 meeting with a 25 basis points cut. This cut follows 50 basis point cut in September and the Fed Funds rate now sits 75 basis points below its 5.25 to 5.50% range which marked the high for... Read →
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Federal Reserve Unveils 50 Basis Point Cut: Fed Funds Target Now at 4.75 to 5.00%
The Federal Reserve acted as expected to lower the benchmark Fed funds rate for the first time in this cycle. Market observers had fully expected a rate cut going into the September 2024 meeting, but had been divided between a 1/4 point and... Read →
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July 2024 Fed Meeting Ends With The Fed Funds Rate Still At 5.25% to 5.50%, But Treasury Yields Move Sharply Lower
The Federal Reserve ended its July meeting by issuing a statement that adjusted its rate stance. Whereas the Fed had previously indicated that it was principally biased towards fighting inflation, its new statement indicates that there has... Read →
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Fed Ends July 2024 Meeting and Remains Unwilling to Lower Rates
The Federal Reserve has finished its June 2024 meeting, leaving interest rates at a 5.25% to 5.50% target. While recent CPI numbers show that the pace of inflation has declined, the Fed is concerned that more progress needs to... Read →
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Why Would the Federal Reserve Lower Interest Rates Now?
Market expectations as we began 2024 were that the Fed would lower interest rates several times this year (beginning early in the year). Instead, inflation measures for January and February were elevated and the Fed has maintained the... Read →
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New FDIC Rules for Trust Accounts Begin Today
The FDIC has implemented new coverage rules that take effect today and only affect trusts accounts that have over $250,000 deposited at a single bank. FDIC rules had previously permitted a single trust account (such as a payable on death... Read →
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Interest Rates Are Headed Down Later in 2024, But Your Savings Account Interest Rate Should Not Have Fallen Yet
At the Fed’s March 2024 meeting Jerome Powell reaffirmed that the Fed is not cutting interest rates until it has further information and continued to guide towards three quarter-point cuts in the Fed Funds rate before the end of... Read →
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The Federal Reserve End March 2024 Meeting Again Holds Interest Rates at 5.25-5.50% Target
The Federal Reserve ended its March meeting leaving interest rates at their current target. The members unanimously indicated that they anticipate three quarter-point rate cuts before the end of 2024. Given that January and February... Read →
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Federal Reserve Maintains Rates at 5.25% to 5.50% Target, Refuses to Guide When It May Cut
The Fed ended its January 2024 FOMC meeting by declining to specify when it may begin lowering the Fed Funds target rate.
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Do US Treasury Bonds Serve a Purpose For Depositors?
With the recent and pronounced move in the Treasury curve, there has been a lot of discussion in the mainstream financial media suggesting that depositors look to US Treasury bonds. The simple reality is that short-term US Treasury bonds... Read →
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Federal Reserve Holds At 5.25% to 5.50% Target and Says Inflation has Eased
Today's Fed announcement and Chairman Jerome Powell’s press conference marked the Fed’s first acknowledgement that inflation is more contained. After having been on hold for four of the last five meetings, the Federal... Read →
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CapitalOne Sued for Deception Over 360 Savings Rate versus 360 Performance Savings Rate
A lawsuit has been filed by customers of CapitalOne Bank alleging that the bank engaged in deceptive tactics with its 360 Savings customer base in 2022 and 2023. The plaintiffs assert that when CapitalOne began offering the 360 Performance... Read →
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Federal Reserve Holds Fed Funds at a 5.25% to 5.50% Target; Still May Not Be Done
The Federal Reserve Open Markets Committee has concluded its October 31 - November 1 meeting, and it voted unanimously to hold interest rate unchanged at 5.25% to 5.50%. The Fed's statement indicates that, while this is its second... Read →
Jerome Powell's Speech at Economic Club of New York Indicated Fed May Not Be Done
Jerome Powell gave an interesting speech in front of the Economic Club of New York earlier today. I think that there are at least three main takeaways from this speech that depositors need to consider. First, the Fed may not be done... Read →
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