What the Fed’s Interest Rate Decision Will Mean for Savers

Published: June 11, 2024

Banks and credit unions have started slowly lowering the interest rates they pay savers amid expectations that the Federal Reserve will eventually cut a key benchmark rate. But with the central bank expected to move slowly, the most generous institutions could keep their yields high into next year. …

“I wouldn’t be surprised if we didn’t have any Fed rate cuts this year,” says Bob Peterson, a financial advisor in Lake Forest, Ill. “But when the Fed does start cutting, you will see rates on savings accounts and on money-market funds go down.”

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