CD rates likely to remain unchanged in spring 2025

In early 2025, the Federal Reserve conducted a meeting to evaluate the monetary policy regarding interest rates. They maintained steady rates after three consecutive cuts in 2024, with a high likelihood of continuing this trend into March, based on a 95% probability from FedWatch. Analysts noted that recent inflationary data and a complicated tariff policy from the new administration contributed to the Fed's cautious approach. Experts suggest that while individual banks may try to attract depositors with promotional rates, overall trends indicate stability or minor declines in CD rates over the coming months. This prediction stems from the observation that changes in CD rates primarily align with short-term interest rate movements. As the Fed aims to control inflation, the likelihood of achieving significant increases in CD rates appears minimal. Some financial experts advise potential investors not to wait for higher rates but to secure current yields while possible, given the prevailing volatility in interest rates and the uncertain economic climate. They caution that waiting may result in missing advantageous opportunities to lock in favorable rates.