Interest Rates

The Feds meet today and will likely cut rates by 1/4%. They may then signal a pause in its rate-cutting campaign.

Wall Street Journal this morning: "The yield on the five-year Treasury has jumped to 3.1% from about 2.6% since the beginning of April."

Some banks are already responding. Some are raising some of their short-term CD rates. GMAC has increase their 4 and 5 year CD to 4.35%. National City has a 48-month CD that pays 5% (minimum $10,000).

Optimistically, the stimulus checks and the encouragement of higher CD rates may by the key for some to start saving.

'til later