High-Yield Cash Options Dwindle as Fed Rate Cuts Loom
Savers face a narrowing window to capitalize on elevated yields before anticipated Federal Reserve rate cuts. Top-tier savings accounts and money market funds still offer returns up to 5.00%, with CDs and Treasuries trailing slightly at 4.60% and 4.68% respectively. A $25,000 deposit could generate $500+ in six months through optimal placement.
The CME FedWatch Tool indicates near-certainty of a September rate reduction, with an 80% probability of cumulative 0.75% cuts by December. This creates urgency for cash repositioning across bank deposits, brokerage sweep accounts, and short-duration government debt.