Two of the World’s richest men have said that they believe the worst is over in this recession. Does everyone else agree?
Warren Buffet and Bill Gates held a conference at Columbia University in New York in front of a crowd of about 1,500 people.
Gates said that the US has been through many tough times in the passed and has always persevered.
Although some of the wealthier Americans believe a recovery is on the way, it doesn’t mean much for people looking to invest their money. CD rates have been at historic lows for some time now.
Just last week short term and mid term CD rates fell again to rates that haven’t been seen since the early 1980s. The average 6 month CD rate is sitting at a measily 0.91%. Longer term CD rates have faired better, but not by much according to Bromoney.
Although long term certificates of deposit rates aren’t as bad, they’re not a great option because you’ll be locking in your money at a low rate for a long period of time.
What can be taken away from halting decline of long term jumbo CD rates is that there may be light at the end of the tunnel. Long term certificate of deposit rates have been in free fall since the beginning of this year, so a halt in this fall may be a sign of the tides turning.
One things is for sure though, the Federal Reserve Board is going to have to raise interest rates from near zero in order to lift short term CD rates. The Federal Reserve recently released a statement saying that they plan on keeping the rate low until they start to see more signs of economic growth.
They didn’t say it explicitly but that could mean until unemployment starts to drop or at least stop rising, they’ll probably keep the low interest rate