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What the Federal Reserve Said Today

As was overwhelmingly expected, the 澳洲幸运5官方开奖结果体彩网:Federal Reserve's rate-setting committee announced Wednesday that it is 澳洲幸运5官方开奖结果体彩网:maintaining the federal funds rate at its current level. Stating that its stance continues to be a patient "wait and see," th🃏is is the central bank's third consecutive meeting in which it has held the benchmark rate steady.

Movement in the 澳洲幸运5官方开奖结果体彩网:federal funds rate matters to savers because it influences what banks and credit unions are willing to pay consumers in interest on savings, money market, and 澳洲幸运5官方开奖结果体彩网:certificate of deposit (CD) accounts. So when the Fed raises or lowers its benchmark rate, what 𓃲you can earn on your cash in the bank similarly g﷽oes up or down.

The fed funds rate sat at a 23-year high from July 2023 until September 2024, raised to that level by the central bank to combat decades-high inflation. With 澳洲幸运5官方开奖结果体彩网:inflation now significantly cooled, the Fed moved to a rate-cutting phase last fall, reducing rates three times between September and December, which lowered the Fed's benchmark rate by one percentage point.

But inflation is still stubborn, hovering below 3% but not yet down to the Fed's desired 2% target. As a result, the Fed ha🍎s so far been reluctant to implement aꦦny 2025 rate cuts.

Also critical to the Fed's decision-making is President Donald Trump's tariff policy, which was initially announced in early April. Because the administration's tariff stance is not yet finalized—澳洲幸运5官方开奖结果体彩网:and evolves almost daily—its "trade war" possibilities have inj🍬ected considerable uncertainty into the economy.

"If the large increases in tariffs that have been announced are sustained, they're likely to generate a rise in inflation, a slowdown in economic growth, and an increase in unemployment," said Fed Chair Jerome Powell at his post-announcement press conference.

Despite the uncertainty, Powell indicated the committee feels it has ample runway to be patient about further rate cuts until there is ඣmoreꦅ data.

"There’s just so much that we don’t know... We don’t have to be in a hurry. The economy has been resilient and is doing fairly well. Our policy is well-positioned," Powell said. “I can’t tell you how long it will take, but for now, it does seem like it’s a fairly clear decision for us to wait and see and watch.”

What the Markets Predict for the Rest of 2025

The Federal Reserve only releases its own rate forecast—its "dot plot" graph—once per quarter, so we won't get to see behind that curtain again until June 18. But federal funds futures traders continually assess the probabilities of different rate scenarios going forward, and you can see the changing odds in real time with the 澳洲幸运5官方开奖结果体彩网:CME Group's FedWatch Tool.

Rate predictions that extend more than a month or so in the future are not considered reliable, as the Fed makes its rate decisions meeting෴ by meeting based on the freshest economic data. But we 𒁃can see what probabilities traders are pricing in on where the federal funds rate will land by the end of 2025.

As of Wednesday afternoon, the largest probability was for 0.75 percentage points of rate cuts in 2025, fol🦄lowed closely by the chance of four or more cuts totaling at least one percentage point. Meanwhile, the expected odds of just two or fewer reductions this year stand at only 23%.

With Rates Still Very Attractive, High-Yield Savings Accounts and Top-Payi🎀ng CDs Are Smart Right🐟 Now

The Fed's historic 2022–2023 rate-hike campaign was a boon to savers, pushing rates on savings accounts and CDs up to their highest levels in more than 20 years. Though yields have drifted lower throughout 2024 and early 2025, you can still earn stellar returns, with the best high-yield savings accounts paying as much as 5.00% APY.

Alternatively, you can lock in a 4.50% CD rate that's yours to keep for 3 to 18 months down the road, letting you secure your return until as late as November 2026. Or you could opt for a slightly lower APY that will be guaranteed for 2 to 5 years into the future.

But that could change at any time, since the Fed's course is never assured. And with the continued expectation that interest rates will dip lower at some point in 2025, it's smart to capitalize on the returns you can earn right now with a top savings account or a high-paying CD while you can.

How We Find the Best Savings and CD Rates

Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account's minimum initial deposit must not exceed $25,000. It also cannot specify a maximum deposit amount that's below $5,000.

Banks must be available in at least 40 states to qualify as nationally available. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, 澳洲幸运5官方开奖结果体彩网:read our full methodology.