Three Simple Ways To Profit from the Fed Rate Cuts

By Matthew Milner, on Wednesday, August 7, 2019

Last Wednesday, I explained why the stock market would inevitably crash…

And I showed you a simple strategy that could help you protect your money.

Well, since I wrote those words, unfortunately, things have unfolded as expected:

The Fed lowered rates… and the market has dropped by about 5%.

But now the markets are getting even messier. So Wayne and I just made a decision. We’re going to spend the next couple of weeks helping you make financial sense of all this:

So today, I’ll explain how to profit and save from the Fed’s rate cuts…

And then, during the month of August, we’ll share powerful new strategies that can help you grow your hard-earned money substantially during these volatile times.

How This Cut Affects You

Last Wednesday, the Fed cut a key interest rate by a quarter point.

Hopefully, this will help protect jobs and keep the economic expansion chugging along.

But at a more personal level, the quarter-point cut will affect the interest rates you experience every day.

In particular, it will impact you if you’re borrowing money, or if you’re trying to earn interest in a savings or investment account.

Let’s take a closer look.

Your Savings Account — Use this Option To Triple Your Earnings

According to, the average one-year CD at the end of 2015 yielded about .25%.

Since then, the Fed has raised rates nine times, by a quarter-point each time. But these increases have barely impacted yields on savings accounts.

As you can see in the below chart (source:, the Federal Reserve, and The New York Times), the average yield on a one-year C.D. briefly topped 1% in 2019.

But as soon as the Fed started hinting at a rate cut, yields started falling.

A 1% yield? If you’re trying to earn some money on your cash or savings, this is horrible news. That doesn’t even beat inflation.

And as The New York Times reported last week, “The trend could continue.”

Here’s a better option for you:

An FDIC-member online bank called Green Dot is currently offering a 3% yield on one-year savings accounts. According to, that’s the highest yield in the U.S. right now.

Keep Your Profits “Rolling Along”

You may have read in the mainstream press that the Fed’s rate cut last week wouldn’t impact the rate on your car loan.

That’s true — but it can still translate into savings for you.

You see, a lower rate reduces the financing costs of car manufacturers and dealers.

And as Tendayi Kapfidze, the chief economist at LendingTree, reports, that means you might be able to “negotiate a cheaper price on a new car.”

It’s Time for a Refi

If you’re like most Americans, your home is the single biggest purchase you’ll ever make.

And that means it’s the biggest loan you’ll ever get.

Over the last few decades, mortgage rates have dropped like a rock:

In 1982, 30-year rates were almost 18%. By 2000, rates were at about 8%. And by 2010, they’d fallen to about 5%.

But today, rates are at 3.75%.

This is perhaps the biggest opportunity for you to save money.

If you have a mortgage and can re-finance it, now is the time!

Powerful New Strategies To Grow Your Money

The market is experiencing enormous volatility right now.

But that doesn’t mean that you have to experience volatility.

Today, I showed you three ways to save and profit based on last week’s rate cuts…

And stay tuned — because remember:

For the rest of the month, Wayne and I will be sharing powerful new strategies that can help you grow your hard-earned money substantially.

Happy Investing.

Best Regards,
Matthew Milner
Matthew Milner


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