It would be nice if they finally pulled their fingers out and got with the inflation program. They seem to be as slow as the FED in getting things right.
My opinion is they are used to cheap money and are struggling to give it up. Just my Opinion, I could be wrong.
Banks are only interested in CDs when they need money to support their lending. And then only when it's cheaper than borrowing from the Fed window or they exceed the Fed window borrowing limits. With increased loan rates loan demand will most likely drop, so it may be a long time before banks are in a position to require deposits and compete on rates.
We will be very lucky if inflation would stay as it is.Based on Fed statements made, it is supposed to be +3% this year over previous.
https://www.bankrate.com/banking/federal-reserve/how-much-will-fed-raise-rates-in-2022/
think it will get close to 4% on a 5 year cd?
Based on Fed statements made, it is supposed to be +3% this year over previous.
https://www.bankrate.com/banking/federal-reserve/how-much-will-fed-raise-rates-in-2022/
Good points, and I'm also of the mind that inflation won't be fixed by just 3% of rate increases.We will be very lucky if inflation would stay as it is.
Based on my experience last year, buying a new car, I would guess that inflation would jump higher. The supply chains only had worsen much more since last year, fueled by Ukraine war, Chinese COVID shut down and our enormous Debt what will require much bigger chunk of our Budget (we also have enormous deficit what needs to be covered somehow). There would be less goods for all the money we print. I am not waiting for the 3% CDs to reload at maturity and buying Farm land (syndicated) instead.