What's the CD account interest rate forecast for fall 2025?
By Sharon Wu
What's the CD account interest rate forecast for fall 2025?
Many financial experts expect CD account interest rates to decline over the coming months.
Christopher Hodge, chief economist of the U.S. at global financial institution Natixis CIB Americas, predicts that "average 12-month CD rates will begin edging lower by late September and into the fourth quarter, falling about 25 to 50 basis points by year-end." His forecast hinges on the Federal Reserve restarting its rate-cutting cycle in September with gradual moves to ease monetary policy.
Market expectations align with this outlook, according to Matt Gentzkow, investment strategist at investment advisory firm Waddell & Associates. "Expectations are for the committee to cut rates by 25 basis points in September, but split on the October meeting," he explains. Gentzkow believes CD account holders can still expect to see decent rates between 4% and 4.5% this fall. But they'll likely tick downward as Fed policy shifts.
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