Fed cuts key interest rate by 25 basis points to 4.25% - 4.50% range
The Federal Reserve is expected to cut interest rates again, which will likely result in lower payouts on cash-like instruments such as savings accounts, CDs, and money-market funds. Despite this, these instruments may still be attractive for investors in the coming years. The rate cut is anticipated to be a quarter of a percentage point, making it the third consecutive cut and bringing the benchmark rate down by a full percentage point. While rates on cash instruments will decline, they may not decrease as quickly as previously predicted. Cash remains relatively appealing compared to long-term bonds.