With the Federal Reserve’s last interest rate cut in December 2025, the central bank’s benchmark effective federal funds rate sits at just 3.64%. In turn, yields on fixed income products have been reduced to the point that, in many cases, income investors are being forced to turn to equities to fill the void.
Today’s best rates on CDs, for instance, are hovering around 4%, while only longer-dated Treasury notes and bonds are currently offering coupon rates above 4%.
