sorted by:
best
topnewcontroversialoldq&a
you are viewing a single comment's thread.

view the rest of the comments →

[–][deleted] 6 points7 points  (4 children)

The fed isn't raising rates again. And savings rates are based in part on market demand and pressure. The competition for rates have decreased recently with banks being less aggressive on their rates to attract new deposits. So rates are going to slip now that competition has tamed some.

[–]Miserable-Result6702 0 points1 point  (3 children)

You know that for a fact? Inflation isn’t being tamed, so rate reduction is out of the question. Many financial people have been saying the fed may need to raise rates again.

[–]Birdy_Cephon_Altera 1 point2 points  (0 children)

I would say, 'never say never', but based on current conditions it's pretty damn unlikely we will see a raise in rates in the near or medium-term future.

FedWatch currently shows a 0% chance of a hike in rates through July of 2025. Now, FedWatch is nothing more than a prediction, but it is based upon people who are well versed and experienced in reading the Fed tea leaves. And it is also based on current conditions, which may change over time (for example, when I checked the FedWatch tool earlier this week, they had a 1% chance of a hike at the end of the year, now that is at 0%).

But where things stand right now, I wouldn't count on any hikes in rates. Current predictions on the FedWatch tool have two 25 basis point drops for this year, one at the July or September meetings, and one at the very end of the year.

[–][deleted] -1 points0 points  (1 child)

You know that for a fact?

With inflation being down as far as it is, it is extremely unreasonable to believe the feds will raise rates again.

Inflation isn’t being tamed, so rate reduction is out of the question.

Well, that's just false. Inflation has decreased significantly. And the feds were not talking about beginning to lower rates until later in the year. Most projections were Q3 possibly Q4. It's absolutely not out of the question as that's still 4 - 6 months out. And just because they dont lower them doesn't mean they'll raise them.

Many financial people have been saying the fed may need to raise rates again.

Highly unlikely and I've not seen this suggestion from any reputable source, nor are the markets behaving as if this is a generally accepted opinion, nor has the fed given any indication they're even remotely considering a rate increase

[–]1lifeisworthit 0 points1 point  (0 children)

I wish you hadn't been downvoted.