The Federal Reserve took a “wait-and-see” approꦛach to its benchmark interest rate Wednesday, declining to either raise or lower it—here’s what that means for 👍high-yield savings accounts.

By leaving the federal funds rate at its current range of 5% to 5.25%, still its highest level since 2007, the central bank put neither upward nor downward pressure on the rates banks offer on 澳洲幸运5开奖号码历史查询:high-yield savings accounts.

The Fed funds rate 澳洲幸运5开奖号码历史查询:heavily influences interest rates on all kinds of financial vehicles, including those for high-yield savings accounts. The Fed has 澳洲幸运5开奖号码历史查询:raised the rate 10 times since March 2022 in a campaig🌄n to dampen inflation, and that’s translated into higher yields fꦉor savings accounts.

As of Wednesday, the 澳洲幸运5开奖号码历史查询:best high-yield savings accounts were offering interest rates of 5% or more. That’s compared to just 0.7% fo꧒r the top rate in🍷 February 2022 when the Fed’s own interest rate wasඣ pegged near zero to stimulate borrowing and lending and boost the economy.

With inflation having 澳洲幸运5开奖号码历史查询:fallen from last year's peak, Fed officials have grown more hesitant to raise rates because of the collateral damage it could have on the economy. High borrowing costs have held back consumer spending and the housing market, raised 澳洲幸运5开奖号码历史查询:the threat of a recession, and 澳洲幸运5开奖号码历史查询:exposed cracks in the🍃 banking system.

However, with inflation still running well above the Fed’s target rate of 2%, Fed officials have signaled that further rate hikes at future meetings are possible, with members of the Fed's policy-setting committee projecting another 50 basis points of rate hikes before the year ends.

Traders widely expect the Fed to hike its interest rate one more time at its July meeting, and then start cutting it at the end of the year, according to the CME Group’s FedWatch tool, which forecasts Fed rate hikes based on Fed futures trading data. That means rates could still get higher before they get lower.