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Cash management update (May 2024) — Interest rates maintained at 22-year high: What’s your next best move?
By Endowus Insights  •  May 14, 2024
The US Federal Reserve has reiterated their stance to keep rates high until inflation retreats to around 2% on an annual basis, rather than risk cutting too early and fuelling another round of price spikes.  As such, the progress to getting to a rate cut sooner has stalled. Despite a flurry of interest rate hikes, inflation remains stubbornly high, with March prices rising 3.5% from a year earlier, fuelled by higher housing and gasoline prices.  The Fed has thus left their benchmark rate untouched in May’s FOMC meeting, meaning that the federal funds rate is maintained at the same level it has held since the central bank’s July 2023 meeting almost a year ago. The rate range of 5.25% to 5.50% also marks its highest level in 22 years. Higher interest rates may hurt borrowers, but also means a higher income on yield-generating assets, including cash management products. A...
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By Endowus Insights
Headquartered in Singapore, Endowus is the first and only digital advisor for CPF, SRS, and cash savings, helping everyone invest holistically, conveniently, and with expert advice at the lowest cost possible.
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