There’s no relief in sight for beleaguered certificate of deposit investors, and no help from an economy that continues to pour cold water on CD rates.
We’ll get to the number in a moment, but by and large, CD rates were down again last week, as measured by the BankingMyWay Weekly CD Rate Tracker.
It wasn’t like there was some specific economic news that drove CD rates further south. In fact, the news we saw last week wasn’t so bad — there was a positive report from the U.S. Treasury that banks have paid back most of the money they borrowed from taxpayers as part of the TARP bailout.
Also, consumers likely gained some relief from a Federal Reserve announcement of a few last-minute additions to its credit card reform rules. Now the Fed says that credit card firms can’t charge more than $25 in late payment fees (per month). Also, card companies must explain to customers exactly why their card APRs were raised.
The CD market still might be suffering from last week’s reports that the Federal Reserve Bank won't lift rates until 2012.That put a damper on bank deposit investors, who haven’t had much to cheer about lately. Some solace might have been taken from remarks last week from Federal Reserve Chairman Ben Bernanke, who told ABC News that he didn’t expect the U.S. economy to fall back into a “double-dip” recession. On the flip side, Bernanke also said he didn’t expect a big rebound, either. “My best guess is we’ll have a continued recovery, but it won’t feel terrific,” he said.