It seems every time corporations get in trouble the fed reserve cuts rates and the banks then can cut CD rates because of cheap money supply to them-but the nations CD holders pay a stiff price-when rates fall below inflation levels -boy the little guy always pays--
When the fed reserve cuts rates -are the people of USA who hold CDs-penalized???interest only loan
You bet the little guy pays because our currency is being devalued time and again by the kooky government.
When the fed reserve cuts rates -are the people of USA who hold CDs-penalized??? loan
The interest rates were not cut because %26quot;corporations were in trouble%26quot;. They were cut because the economy was slowing and potentially going into recession. That means that everyone might be in trouble, including you and me, not just corporations. Corporations don%26#039;t hire people and hand out nice raises when the economy is bad and people aren%26#039;t buying goods and services.
Yes, you will get less interest on your CDs. However, let%26#039;s look at the big picture. Lower interest rates can have the effect of stimulating economic growth. Economic growth means more jobs. It also means a rising stock market which will make you more money than a CD will. Personally, I would rather have a job in a growing company and a rising stock portfolio than a few extra extra bucks interest on a CD. I%26#039;ll be much father ahead in the long run.
Occasionally, less can be more.
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