Fed's Raising rates on Sept. 28th???

[gavinmccallister]

I am curious about what you guys think will happen do you think that they will continue with the rate hikes after the brief pause in August? I am hoping that they do raise rates, I have an offer from my local bank for a 7 month CD paying 5.25%(Limited Time Only) I don't want to commit to that rate when a rate increase might be just around the corner. Does anyone have any suggestions?

[poundwise]

I'm not sure why a 7 month CD at 5.25% is particularly attractive when there are online MMA accounts offering that rate and online CD offers exceeding it. Unless you just value the fact that is through your local bank.

[thekid]

My gut feeling (and I don't have a particularly good gut): 65% chance of it remaining unchanged (economic uncertainty), 35% chance of hike (inflation, lowered oil prices).

Bah, what do I know!

[Bookie]

Originally Posted by poundwise

I'm not sure why a 7 month CD at 5.25% is particularly attractive when there are online MMA accounts offering that rate and online CD offers exceeding it. Unless you just value the fact that is through your local bank.

I would add to this that trying to call the top (or bottom) in interest rates is probably as fruitless as trying to call the top (or bottom) of the stock market.

If an interest rate is good enough to lock in today, I'll do so. The fact that tomorrow's rate might be higher is irrelevant.

To answer the question, I suspect the Fed will hold rates steady through the end of the year to give the economy time to respond fully to past increases.

[Ima saver]

I can get (and do) a 5.25 % interest rate on the money market at my regular bank.

[shelbylovesmelby]

I always try to remember to look @ www.bankrate.com before committing any money to anywhere.

[Ima saver]

Me too!

[markio26]

check bankrate.com and your local sunday newspaer in the investing section for the rates in your area.

[JBinKC]

Given what has happened to energy prices recently I am going to go out on a limb and say they are going to become accomodative again. My guess is they will not raise rates and I think they are going to issue a statement of an easing bias.

[sweeps]

The Fed held the rate at 5.25%. Not unexpected since real estate and commodities (including gold) are on their way down.