Locking in rates on longer term CD's

[gavinmccallister]

I heard some people talking about possibly locking in some high interest rates on CD's now, some people think that after the next fed meeting rates might drop. Does anyone think that might happen?

[gavinmccallister]

Re: Locking in rates on longer term CD's

I am thinking about locking in some CD rates, I think I will wait until after the June Fed meeting. Is anybody thinking about doing the same thing?

[coffeebreak]

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.

[sweeps]

Re: Locking in rates on longer term CD's

I agree with coffeebreak. It is very likely that the Fed will raise interest rates to 5% and probably higher.

[JoyJoy]

Re: Locking in rates on longer term CD's

Yep! 6 mos tops on CDs here too from GMAC.