Like it or not, the Federal Reserve's actions (and sometimes just words) hold tremendous sway over the stock market and the economy. Their influence over the markets birthed the saying, “Don’t fight the Fed.” Recently, they released a statement about what they believe to be the future of their monetary policy in support of their stated goals: maximum employment and price stability. This post will examine what it means to investors in the coming year.
Our desire to hold onto what is already ours will sometimes cause us to make short-term decisions with long-term money because the pain of losing money is greater than the satisfaction of making money.
The question of buying an IPO (initial public offering) has less to do with the actual company in question and more to do with the probabilities of success in general.
As a purchaser of a CD, you are effectively lending money to the bank and the rate they are willing to pay will be slightly higher than the Federal Funds Rate. As such, as long as the Fed Funds Rate stays pinned to the floor as it currently is, do not expect the interest rates on CDs, money markets, or savings accounts to meaningfully budge.