While checking and money market rates have not had significant changes recently, if the Federal Reserve makes any more changes to the Federal Funds rate, we should see some movement in checking and money market rates.
The Federal Reserve is one of the main driving forces for rates changes on checking and money market accounts. With the Federal Reserve increasing the benchmark federal funds rate a quarter-point, I anticipate checking and money market account rates to show some movement in the coming weeks.
The expectation is that, over time, interest checking and money market rates will continue to increase, especially if the Federal Reserve makes more rate increases.
The T-bill rates index is the primary driver for the longer term CDs, 12 month and longer.
The bond market has an influence on the longer term CDs [greater than 12 months], while the shorter term CDs, along with checking and money market accounts, are influenced more by the Federal Reserve.
The Federal Reserve raising interest rates earlier this month prompted financial institutions to slightly increase interest checking rates.
Rates for long term CDs (terms of 12 months and longer) are typically driven by the activity in the bond market. The bond market has been fairly active over the last couple of months, which is why you are seeing long term CD rates changing.
For checking and money market rates the Federal Reserve is one of the main driving forces.
There has actually been very small to no movement in the CD rates over the last week. ... Any movement in the CD rates, especially in the CDs for 12 months or longer, would be primarily due to the fluctuations in the T-bill rate.
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