There are some that believe that the fed is going to continue its monetary policy until the employment picture changes. This might be true but some speculate it is to jump start the stock exchange. The fed actually thinks they can force people into trusting financial institutions that just failed the country miserably.

The low interest rates are supposed to stimulate the economy by making loans more affordable. This has backfired along with the bailout money that the banks were supposed to use for loans. Instead, banks gave out bonuses to bank officials that caused the financial meltdown. 

Because of this failed monetary policy by the Fed and the US government, the American people will not be able to find safe refuge for their money in CDs for the foreseeable future. Mr. Greenspan did not make policy that hurt the common American, while the present, unnamed head of the Fed has another agenda. Do not follow his lead or advice. It is not good for the country, just only for the wealthy that seem to have control of it.

Most investors are still looking to gold as the answer. With it near a record high and still climbing, the end is not in sight.

Be a wise investor and make your own decisions, but the banks are not to be trusted, from my point of view. Their CD rates will not even cover the cost of inflation. Does it sound like a good deal to you? It does not to me. As for the 2010 CD rates, will CD rates improve in 2010? I can’t see how they can with the present administration knuckling under to the powerful banking industry.

Related posts:

1. Certificate of Deposit Rates Keep Falling
2. CD Rates Versus Fed Funds Rate Increases
3. Best CD Rates April 2010