It really goes to show how scared the Federal Reserve is of the current economic situation. They keep the interest rates high, essentially putting a damper on the economy because they think inflation could get so bad it’d be even worse.
Russian central bank is doing same thing in an attempt to control inflation. I believe they’re at 16% right now & 7~8% inflation.
I think the Ukrainian war is the cause of much of this. The Iranian situation of course threatens to raise inflation even further.
Biden’s in a tough position. It’s a very good thing the president can’t control the Federal Reserve. I would have dropped the rate if I were him.
The thing is a 5-6% interest rate isn’t really “high”, it’s on the low side of normal:
It’s only “high” in comparison to the irresponsibly low interest rate we’ve had since 2008. This isn’t “scared”, it’s hopefully a return to stable financial policy. The people who are complaining loudest about this are the financial parasites that have gotten used to getting free money from the government for so long.
I hope the fed keeps it like this for the next 20 years.
Bad news for those seeking to purchase/sell homes
Good news for rolling over cds
If you’re not getting 4% on your savings account, you should be switching banks.
That’s $40/year for every thousand you keep in the account, $200/year for $5000.
These sorts of comments are always kind of funny to me cause they strike me as somewhat out of touch. Nearly half of all Americans don’t have savings of more than $500.
But they could if more of them put their money into CDs
They mostly don’t have any money left over to put into a CD…