Overview
- Markets widely expect a 25-basis-point Fed cut on Wednesday, with another reduction likely by early 2026, according to CME FedWatch data reported by CNBC.
- High-yield savings rates are variable and typically slip quickly after a Fed move, with leading online accounts now around 4% to 4.5% versus a 0.63% average for standard savings.
- Fixed-rate CDs and individual Treasurys can lock in current yields, with many short-term CDs offering roughly 4.25% to 4.40% and short-term Treasurys just under 4%.
- New CD offerings usually begin to decline within weeks of a Fed cut, while short-term Treasury yields tend to adjust almost immediately once policy changes are announced.
- CDs guarantee a rate but limit access and can carry early-withdrawal penalties, whereas Treasurys can be sold before maturity and their interest is exempt from state and local taxes; consumers should monitor APYs and be ready to switch banks as institutions cut at different speeds.