When the Federal Reserve cuts interest rates, yields on certificates of deposit and similar traditional instruments tend to decline accordingly. The rate reductions we've witnessed throughout 2025, combined with speculation about additional cuts potentially coming in 2026, are likely to maintain downward pressure on yields across the board. As experts from major financial institutions point out, these macro trends create a challenging environment for yield-seeking investors navigating both traditional and alternative asset classes. Understanding how central bank policy flows through to different yield instruments remains crucial for portfolio positioning.