Quote:
Originally Posted by retiredguy123
I would have agreed with you 20 years ago, when I could live off of my money market and bond monthly interest checks. But I don't think the Federal Reserve will ever again let savers get a fair rate of return on their fixed rate income investments. They want to encourage more borrowing and less saving.
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"They want to encourage more borrowing and less saving" Uh, the Fed is doing the exact opposite when they raise interest rates. Have you seen the mortgage rates recently? Does that sound like the Fed is encouraging people to borrow against a house? This more importantly, plays through to the corporate environment. Higher rates=less borrowing=slower growth=freezing hiring= less money in the hands of everyone = reduction of inflation and possible recession.