There goes your 5% high yield savings accounts.
Money has been fleeing money markets. Vanguard Federal has dropped from 5.38% to 5.19% in the past month. In few weeks we’ll be in the low fours.
I’ve been a buyer of corporates. I can get 6.5% to 7% on 2- to 4-year paper.
I just locked in at 4.0% last month. It feels nice to do something right for a change. I figured rates would come down after the election. I am mildly surprised Powell didn’t wait until November. He is not wrong to lower rates, but it is bad optics right before the election.