Knowing how the Federal Reserve’s monetary policy decisions impact your interest earnings over time is key to making an informed decision about where to put your money. And with a rate cut on the horizon, the best option may be a certificate of deposit (CD). CDs can be a smart way to guarantee steady returns, especially if interest rates are expected to fall in the near future. Here's why you may want to consider opening a CD before the Fed's next meeting. How the federal funds rate impacts CD rates The ...

The FOMC finally lowered the federal funds rate on Sept. 17. It was the first rate cut of 2025, and Wall Street traders currently expect two more rate cuts from the Fed before the end of the year. The federal funds rate. The Fed. The FOMC. No doubt you've heard and read these terms before. But what do they mean? How does this impact your financial life? Here's what you need to know about the federal funds rate — and why it matters. We'll keep it really simple. In this article: What is the federal funds ...