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Weatherhead’s Jonathan Ernest forecasts continued declines in short-term certificate of deposit (CD) rates

What’s the CD interest rate forecast for November 2024?
CBS NewsJonathan Ernest, assistant professor of economics at Weatherhead School of Management, forecasted continued declines in short-term certificate of deposit (CD) rates due to anticipated further cuts in the federal funds rate. While recent rate cuts led to decreased returns, long-term CD rates may behave differently, influenced by factors beyond the Fed’s direct impact, he said.