Money Market Rates Dwindle After Fed Rate Cut, Driving Consumers to CDs

More news and commentary continues to pour in after the massive Fed rate cut. Check out this article from Bloomberg.

Banks offering certificates of deposit may be a beneficiary of the U.S. Federal Reserve’s action on its benchmark interest rate, as holders of money-market funds invested in U.S. Treasuries will see even lower returns.

The article goes on to illustrate how bank cds are both protected by the FDIC and offering better and more consistent return on investment than other, riskier types of deposits.