CBS News
Biden and lawmakers seek path forward on Ukraine aid, border talks with White House meeting
Washington — President Biden is set to meet with congressional leaders on Wednesday afternoon as a monthslong dispute over border security and aid for Ukraine makes its way to the White House.
The high-stakes meeting is set to focus on what the White House calls “the critical importance” of the president’s supplemental funding request, which includes money for Ukraine, Israel, border security and more. The White House said congressional leaders, key committee chairs and ranking members were invited to the 3:15 p.m. sit-down, but it has not released a full list of participants.
For months, the spending package has been up in the air after congressional Republicans made their backing contingent on the Ukraine aid being tied to enhanced border security measures and immigration policy changes. Senate negotiations aimed at forging a compromise on immigration issues dragged through the holidays and into the new year.
Seeking to attract a group of moderates from both parties to back the aid package, senators have been circling a middle-ground deal that would represent a major breakthrough after decades of failed efforts in Congress to reform the immigration system.
Senate Majority Leader Chuck Schumer said ahead of the meeting that the upper chamber has “made a lot of good progress” in recent weeks, noting that he’s “hopeful that things are headed in the right direction.”
“I expect the meeting with President Biden will reinforce something I’ve been saying all along: It’s a matter of the highest national urgency that both parties keep working together to pass the supplemental,” the New York Democrat said. “The eyes of history are upon this chamber.”
But even if the Senate reaches and passes a deal on immigration, its prospects for approval in the House are far from certain.
House Republicans skeptical of Senate immigration talks
Kent Nishimura / Getty Images
House Speaker Mike Johnson, a Louisiana Republican, said at a news conference earlier Wednesday that House Republicans are “anxious” to see the Senate agreement on border security and acknowledged the “thoughtful” negotiations. But he quickly cast doubt on whether there would be support for the immigration reform in the lower chamber.
“I don’t think now is the time for comprehensive immigration reform, because we know how complicated that is,” Johnson said, noting that it can’t be done quickly. “I do think it’s past time to secure the border.”
House Republicans have stood firm on a demand that a House-passed border security bill known as H.R. 2 be the baseline of any immigration agreement — a nonstarter in the Democratic-controlled Senate.
Johnson touted H.R. 2 again on Wednesday, noting that it would restore the Trump administration’s “Remain in Mexico” policy, end the quick release of migrants into the U.S., reform the asylum and parole processes and resume construction of the southern border wall.
“Those elements are critically important,” Johnson said. “You can’t choose from among those on a menu and assume that you’re going to solve the problem.”
The speaker said House Republicans are “demanding real, transformative policy change,” noting that they’re “standing on that line,” which he said he plans to tell the president at Wednesday’s meeting.
When asked about Ukraine aid, Johnson made clear that he would tell Mr. Biden that border security comes first, saying “we have to secure our own border before we talk about doing anything else.”
He also said House Republicans need answers to “critical questions” about the U.S. strategy in Ukraine and accountability for funding to Kyiv.
“We need to know that Ukraine would not be another Afghanistan,” Johnson said.
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
Watch CBS News
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.
Getty Images
Certificates of deposit (CDs) have long been a favored savings tool for those seeking safety and predictability in their investments. These interest-bearing accounts have been even more popular in recent years though as the high-rate environment offered savers an enticing opportunity to earn big interest on the money they deposited. But the economic environment is shifting now that inflation is cooling and the Federal Reserve has slashed its benchmark rate twice in response, which has led CD rates to experience a decline.
Even with this downward trend, though, CDs continue to offer compelling returns compared to historical averages, particularly when measured against the near-zero rates that characterized much of the previous decade. For perspective, it’s still easy to find CD rates above 4% right now, but savers were fortunate to find CD rates above 1% as recently as 2021, making today’s rates notably attractive even after recent declines. When you factor in the other benefits of investing in a CD, like getting a fixed, locked rate for the entire term, it makes sense to consider investing in CDs as part of your broader investment strategy.
Still, this evolving rate environment presents both challenges and opportunities for strategic savers, leading to some hesitation for those considering locking their funds into one of these accounts. But while the natural instinct might be to shy away from CDs as rates decline, it’s important to understand how far CD rates have actually fallen this year — as well as the enduring benefits of these financial instruments.
See how much more you could be earning with a CD now.
Here’s how far CD rates have dropped this year
To illustrate the change in CD rates that has occurred so far in 2024, let’s look at the average CD rates from January 2 as well as today’s averages (according to Bankrate data).
6-month CD rates
- Average 6-month CD rate on January 2: 5.50%
- Average 6-month CD rate today: 4.85%
Total percentage drop: 11.81%
1-year CD rates
- Average 1-year CD rate on January 2: 5.66%
- Average 1-year CD rate today: 4.50%
Total percentage drop: 20.49%
3-year CD rates
- Average 3-year CD rate on January 2: 4.75%
- Average 3-year CD rate today: 4.20%
Total percentage drop: 11.57%
5-year CD rates
- Average 3-year CD rate on January 2: 4.60%
- Average 3-year CD rate today: 4.35%
Total percentage drop: 5.43%
As illustrated above, the decline in CD rates has varied by term, with 1-year CDs seeing the most significant drop. These shifts can largely be attributed to the broader economic adjustments, such as market responses to Federal Reserve interest rate policies. Lower rates often indicate a cautious market, signaling that economic growth may be slowing or that inflationary pressures are easing, both factors that banks consider when setting CD rates. Still, even with these adjustments, CDs offer some of the most attractive yields for secure savings accounts.
Open a CD and lock in today’s top rates now.
Why you should still open a CD now
CDs are still an excellent option for conservative investors or anyone looking to secure a stable return without market exposure, even at today’s lower rates. Here’s why:
- Guaranteed returns and safety: CDs provide a fixed, guaranteed return on investment, regardless of market fluctuations or future rate cuts. This stability is particularly appealing during uncertain economic times when other investments may present more volatility. For many, this peace of mind alone makes a CD worthwhile, especially when saving for short- to medium-term goals.
- Higher yields compared to savings accounts: Even with this year’s rate drops, CD rates remain higher than most standard savings or money market accounts. For example, a 1-year CD today offers an average rate of 4.50%, while the average savings account rate is currently just 0.45%. This spread can make CDs a better choice for funds you don’t plan to access for the term length, giving your money a chance to grow at a higher rate.
- Predictability for financial planning: With CDs, you know exactly what your return will be at the end of the term. This predictability helps with budgeting and financial planning, making CDs ideal for earmarked funds such as emergency savings, future down payments or anticipated large expenses.
- Potential tax benefits on longer terms: The potential tax advantages can also help enhance overall returns on longer-term CDs. While CDs are subject to income tax, tax-advantaged accounts like IRAs often allow CDs to grow tax-free until withdrawal. This option can be particularly appealing for long-term savers, as it lets returns accumulate more efficiently, effectively offsetting some of the recent rate drops.
The bottom line
While this year has seen a decline in CD rates across all terms, the value proposition of CDs remains strong, especially for those prioritizing safety, fixed returns and ease of financial planning. Even with the rate reductions, CDs can offer higher yields than regular savings accounts and the security of knowing your investment is FDIC-insured up to the standard limit. As the economic landscape continues to evolve, it’s worth considering the potential for future rate shifts, but locking in a CD today can still provide benefits for savers seeking reliable, stable returns on their cash.
