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What Is Your Money Market Yield?

crystal.jpgI don't think anyone can predict interest rate movements, although every commentator on CNBC these days is  happy to give you their viewpoint on what they think the Federal Reserve will do.  Rising interest rates over the last two years has been great for investors that use money market accounts or prefer CD's in their portfolio. 

Yields on these investments are probably right about 5% right now.  Your bank, credit union or fund company will offer money markets-call and see what the current rate is.

However USAToday uses their crystal ball and says rates may heading a different direction and also explains how the Federal Reserve Board views inflation and interest rates.

Some seasoned Fed-watchers figure that the Fed's rate-raising work is done. Gross domestic product, which grew at a 5.6% annual rate in the first three months of 2006, slowed to a 1.6% annual rate in the third quarter. If the Fed were to raise rates much higher, it could trigger a recession.

Posted on Saturday, November 18 by Registered CommenterWise Owl in | Comments Off