Interest rates that banks pay on certificates of deposit are closely tied to short-term interest rates set by the Federal Reserve. Now that the inflation rate has come down, many investing pros see two possible outcomes for interest rates in 2024: one in which the Fed has little choice but to cut rates steeply, and another in which the Fed can cut rates modestly. Either scenario would eventually result in CD rates decreasing, since rates on CDs tend to quickly follow Fed moves. Where will CD rates go in 2024? But if investors are correct that rate cuts are coming, those high CD rates will come down over the next few years, too.

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Persons: Mallika Mitra, “, ”, Lili Vasileff, Leslie Falconio, “ They’re, you’ll, you’re, Jeremy Keil, ” Keil, Keil, “ You’ve, Ally Organizations: Federal Reserve, UBS, Wall, Federal Credit Union, Minnequa Works Credit Union, Federal Deposit Insurance Corporation, National Credit Union Administration Locations: Greenwich, Conn, U.S, Milwaukee, APYs