Re: Locking in rates on longer term CD's
I wouldn't get a CD that's longer than 6 months. The Federal Reserve will raise the funds rate to 5.0% on May 10th. In 2004 the Fed raised the rate 1.0% and in 2005 they raised it 1.75%. 1% would put the rate at 5.50% by the end of this year. 1.75% would put it at 6.25%. I will guess 5.75-6.00% by the end of the year. ED is usually 0.25% below the funds rate.
The high employment rate and high gas/diesel prices will keep the rate going up.
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