The Fed is widely expected to hold interest rates steady this week. But its new forecast will hint at where savings and CD yields may be headed later this year.

Waller’s hedging is a notable shift from January, when he was one of the two Fed governors to dissent against the central bank’s decision to hold its key rate steady after three rate cuts at the end of last year. The decision left the Fed’s short-term rate at about 3.6%.

Boston Fed President Susan Collins said on Friday that there's no urgent need to change interest rates, expecting current policy to hold for some time.

The federal funds rate holding at 3.50%-3.75% should help stabilize the labor market while helping push inflation down toward the Federal Reserve's 2% goal, Federal Reserve Chair Jerome Powell said on Wednesday at his post-decision press conference.

Surging oil forces markets to price out 2026 Fed rate cuts, as SOFR spreads signal potential hikes. Learn why the policy narrative could shift.