Today, Ben Bernanke “signaled a readiness to keep on lowering a key interest rate to shore things up.” Today’s announcement caused stocks to drop in response as well.I’m not sure what I think at this point.
From a personal standpoint, it just means that the interest rates on my savings accounts will drop yet again, and I’m considering dumping some funds into a cd with a decent rate while I still can. I have to admit, I find it a little bit frustrating. But I’d like to think that the people making these decisions are smart and know what they’re doing.
Edited to add:
I decided to open another $500 CD with ING Direct at the 3.65% interest rate. Only the 6 month CD is available at this rate. I did this just about a month ago when the rates were over 4%. I’m reluctant to lock up too much of my money for too long (I do have other CDs with a different bank), but I do know that I’m not planning to need this money for another 6 months, so right now, it’s what makes the most sense. Sure, it’s only $500, so we’re only talking a few dollars in interest, but those few dollars add up!
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