Will Obama Administration Push Up Long-Term Interest Rates?

President-Elect Obama has outlined an ambitious economic stimulus program involving government spending on infrastructure and government hiring. This multi-billion dollar spending program will be on top of the billions to still be spent with the ongoing government bailout of financial companies. While a majority of economists have approved the plan as prudent, a number have [...]

Investor Interest Rate Update

Interest Rate Update: January 5, 2009:

The Federal Reserve has lowered interest rates in the United State to historic lows pushing down yields on most savings instruments. Current rates and yields include:

3-month Treasury Bill: 0.08% yield

6-month Treasury Bill: 0.28% yield

1-year Treasury Bill: 0.38% yield

2-year Treasury Bill: 0.81% yield

3-year Treasury Bill: 1.07% yield

5-year Treasury Bill: 1.66% yield

10-year [...]

Will the Fed Drop Rates?

A majority of economists are predicting at least another quarter point drop in interest rates will be announced by the Fed tomorrow with an outside chance of a half point decrease. Recent economic releases which have highlighted just how sluggish the U.S. economy has become have bolstered the ability of the Fed to aggressively lower [...]

Central Banks Coordinate and Drop Interest Rates 50 Points

Global stock market selloffs and dire economic predictions have prompted a concerted effort by central banks to calm financial markets. Central Banks in the United States and Europe have lowered their key lending rate 50 points today.
Joint statement Issued 10/8/2008:
Throughout the current financial crisis, central banks have engaged incontinuous close consultation and have cooperated in [...]

Online Banks Deals that Beat Your Local Bank Rates

Chances are your local bank has taken note that the Federal Funds rate is at 2.25% and that Treasury Bills are below 2.00%. Even more likely is that the bank has lowered their deposit rates on your checking or savings account accordingly. Fortunate for savings investors there are a number of online banks willing to [...]

The Federal Reserve and Online Bank Rates

The Federal Reserve delivered a 75-point rate cut yesterday reducing the federal funds rate to 2.25%. Banks have lowered their own prime rates down to 5.25% marking the lowest level of the prime rate since 2004. Similar to how January and February saw the slow demise of 5.00% online bank deposit rates, the remainder of [...]

Inflation and the Series I Savings Bond

The Treasury Department has had a Savings Bond program since 1935 to raise funds for the U.S. Government. With the backing of the government implicit these bonds considered among the safest investments in the world. They have not drawn a great deal of attention from investors due to the rates paid on them, which is [...]

Online Bank Deals Just Got More Attractive (compared to US Treasuries)

On the face of it a rate cut by the Federal Reserve along with signals that the Fed will cut some more in 2008 would appear to be devastating news to investors accustomed to finding great rates from online banks. However, there appears to be enough competition and thirst for deposits by online banks to [...]