Federal Reserve Chairman Ben Bernanke presented to Congress today the semiannual Monetary Policy Report which discusses current economic conditions, monetary policy and thoughts on fiscal policy. Mr. Bernanke vigorously defended the Federal Reserve’s zero interest rate policy stating that the benefits of an easy money policy outweigh the “potential costs of the increased risk-taking in […]
Bernanke Tells Retirees and Savers “To Take One For The Team” – Interest Rates To Remain At Zero
Negative Real Interest Rates – The Invisible $290 Billion Tax On Savers
Whatever happened to the concept of earning interest on savings? Since the start of the financial crisis in 2008, the Federal Reserve has aggressively suppressed interest rates to near zero. The Fed’s rationale for lowering interest rates was to get the economy back on track by lowering borrowing costs for both consumers and businesses. Lower […]
Banks Were The Worst Place To Keep Your Savings This Year
Federal Reserve Chairman Ben Bernanke warned us repeatedly that he would repress interest rates indefinitely in order to help the economy and the housing market. Interest rates on government treasury securities have reached all time lows and bank depositors are receiving close to a zero return on their savings. Meanwhile, both housing and the economy […]