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CD Rate update

Perhaps this means something or maybe not. I keep track of CD rates available at Schwab. On Nov 7 one could purchase a 60 month CD @ 5.00%. After that, 60 month CDs disappeared. Today they are back at 4.00%. 12 month remains around 4.8%. A trend or a pause?


  • My guess is that it is a pause. I think pauses are not unusual just before the Feds make a decision about interest rate hikes, but I fully anticipate the Feds to continue with interest rates, even though they are likely going to be smaller and less frequent. However, I am not anticipating longer term rates of 5 years, to be as high as shorter term rates of less than 2 years. I think there is too much optimisim that this rate hike period will only last another year, and at that time, I suspect shorter term rates will likely settle into a period where they are not rising so fast every few months.
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