If you’re considering a CD, now could be the right time to act.
The Federal Reserve is expected to cut the federal funds rate 25 basis points at the end of its two-day meeting Wednesday at 2 p.m. Though CD rates tend to track Treasurys more closely than the federal funds rate, some banks may cut CD rates further sometime after the Fed’s decision. The number of expected future rate cuts mentioned on Wednesday can impact CD rates, says Adam Stockton, director of consumer pricing at Novantas.
If CD rates do move after the Fed meeting, they will likely move lower.
“My advice to consumers is always make the decision that makes the most sense for you given the rates that you’re seeing today,” Stockton says. “It’s possible that in a month or two, the rates will move in a direction where you regret that. And it’s possible that rates will move in a direction where you’re very happy you made the decision you did.”