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The Fed target interest rate is 4.75% after being 0.25% since the beginning of 2020. The days of free money firehose are done for now. Am I somehow thinking of
by QuarterReptile 4y ago
The Fed target interest rate is 4.75% after being 0.25% since the beginning of 2020. The days of free money firehose are done for now.
Am I somehow thinking of the wrong rate here? Heck, my savings account gives 3.5%, like when I was growing up.
- psychlops 4y agoNo, you are right as my reply was ambiguous. Inflation is high which (i believe) would usually call for a higher Fed rate as they did in the 80's. As it stands, they are keeping rates relatively low. I just looked it up and Volcker pushed rates up to 20%(!) in 1981. It is my belief that the strategy is for inflation remain higher in order to drop federal debt.
- QuarterReptile 4y agoI'd say that's the strategy for about 530 of the elected representatives in Congress (and by extension, for just about everyone), whether or not we recognize or acknowledge it.
- nickfromseattle 4y ago> Heck, my savings account gives 3.5%, like when I was growing up. Which bank?
- QuarterReptile 4y agoAmex