Since the current Fed funds rate is the range of 5.25% - 5.50% and you're earning 5.15% I would suspect that the rate you'll earn will also fall by the amount that the Fed cuts. I would suspect a 15-30 day lag between the rate cut and your fund adjusting to the new reality.How are they connected? To be specific. Fido Premium MM rate is currently 5.15%. Has not gone down in a long time, even as the 10 year rate has dropped significantly. So if the Fed drops rates starting in Sept. what would be the impact on Fido MM rate. How fast would FIDO rate decrease as Fed drops rates? Lets say after the Fed drops rates by .75% by year end, what would your forecast of Fido MM rate by year end.?
Regards,
Statistics: Posted by retired@50 — Wed Aug 21, 2024 6:40 pm — Replies 5 — Views 523
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