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What Market Trends Mean for Your Savings This Month

Bask Bank^® Monthly Market Insights — January 28, 2026

As we enter the new year, the economy is already active and evolving. The good news? You don’t need to be a market expert to understand how these changes may affect your wallet. Below is a simple, easy-to-follow look at the key trends shaping the financial landscape this month, and what they may mean for your savings, CDs and broader financial plan.

The economy is rebounding after a late summer slowdown.

Recent economic data across housing, manufacturing and consumer activity shows the U.S. economy steadily recovering from last year’s softer stretch. Housing activity and affordability measures are improving, manufacturing surveys point to gradually rising activity and job openings remain solid at roughly 7 million — signaling that the labor market remains resilient, despite a few slower payroll reports late last year. 

What this means for your finances:

A strengthening economy tends to support higher interest rates on savings products, which is great for anyone building cash reserves or increasing their emergency fund. If growth holds steady, attractive savings rates are likely to stick around.

Inflation is steady — but everyday costs still feel elevated.

Inflation is drifting near the upper 2% range. Lower gas prices have helped hold the number down, but many households still feel squeezed by rising prices for groceries, healthcare and other essentials. For example, some common food items have climbed nearly 10% per year over the past several years.

Why this matters for savers: 

Even moderate inflation erodes purchasing power. Earning more on your savings is one of the simplest ways to stay ahead. Accounts that offer higher returns, such as high‑yield savings or CDs, give your money more opportunity to grow, no matter what the inflation environment looks like.

Interest rates hold steady, but future cuts are still possible.

With economic data showing signs of strength, the Federal Reserve is unlikely to cut interest rates in the very near term. Markets still anticipate a couple of rate cuts later this year — likely beginning in the summer — but those expectations are shifting as new data shows stability.

Long‑term rates (like 10‑ and 30‑year bonds) have been inching higher globally as governments work to combat inflation and stimulate growth.

What this means for you:

• Savings accounts remain attractive while short‑term rates stay elevated.
• Now may be a smart time to lock in a CD, especially if you value certainty and want to secure today’s elevated yields ahead of potential rate cuts later this year.
• If rates do decline, you’ll be glad you locked in early.

The stock market is starting the year strong — and broadly.

Markets entered the new year with momentum. While tech stocks have dominated headlines in recent years, this month’s gains have been more balanced, with sectors like industrials, energy and staples also moving higher. Broad participation often signals healthier market conditions.

Earnings season is underway, and early results from major companies, across banks, airlines, entertainment and more, show positive surprises on both revenue and profit.

How this connects to your planning:  

If you’re investing alongside savings, stronger and more balanced markets can support long‑term growth. Even if you’re focused primarily on cash savings, steady financial conditions often support competitive deposit rates.

Policy and government: plenty of noise, limited immediate consumer impact

From tariff rulings to upcoming tax changes in February, there’s been no shortage of policy headlines. For now, there’s little that requires immediate action. Several states have implemented tax cuts, and new federal tax provisions will start flowing through refund season.

Changes in fiscal, monetary and credit policy are currently overlapping in a rare moment where all three are stimulative, meaning they generally support economic growth rather than restrict it.

What this means for your money: 

This supportive backdrop may help keep interest‑earning opportunities competitive. It’s also a reminder that staying focused on steady saving fundamentals and smart planning often beats trying to predict policy headlines.

Smart Money Moves for January and Beyond

Here are a few simple, practical steps you can take right now:

1. Make the most of today’s high savings rates.

   Savings yields remain elevated. Keeping your emergency fund or short‑term savings in a high‑yield account helps your money grow faster.

2. Consider locking in a CD for rate security.

   If you prefer certainty — or you’re saving for a known expense — locking in a CD now could shield you from potential rate cuts later this year.

3. Revisit your emergency fund.

   Prices for essentials continue to rise. Review your emergency savings and consider increasing it to reflect today’s cost of living.

4. Stay the course with long‑term goals.

   Markets may be bumpy at times this year, but healthy earnings growth and broad market participation mean long‑term savers remain well‑positioned.