MoneyRates Blog
When Will Inflation Expectations Lift CD Rates?
By Clark Schultz | Money-Rates Columnist
Recent economic releases have increased the optimism of some market analysts about the U.S. economy, although you may have to listen or read very carefully to find the good news. The glimmers of hope are hidden in phrases like, “the pace of declining home sales has slowed” or “growth was forecast to be worse than reported.” Not exactly enough [...]
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Where are the Banks Offering Inflation-Linked Deposits?
By Clark Schultz | Money-Rates Columnist
If you do a search for banks offering rates which are indexed to the S&P 500, Dow Jones Industrial Average, or yields on U.S. Treasuries you can find various money market and CD products. Missing from the list of variable-rate offerings is anything tied to inflation. There are inflation-linked securities available, but surprisingly there are [...]
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Savings Bonds Which Have Stopped Earning Interest
By MoneyRates team | Money-Rates Columnist
The Treasury Department announced earlier this month the new rates for savings bonds. Purchasers of the Series I savings bond will earn a fixed rate of 0.70% and an inflation-adjusted rate of 4.92%. The inflation-adjustment is reset every six months. New buyers of the Series EE bonds will earn a rate of 1.30, while current [...]
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Dire Prediction from ex-Chief Economist from IMF
By MoneyRates team | Money-Rates Columnist
Professor Kenneth Rogoff who was the chief economist for the International Monetary Fund for 5 years has issued some stark warnings about the banking and credit crisis in the United States which have reverberated around Europe and Asis. Among Rogoff’s predictions:
* A major bank in the United State will fail
* The financial crisis in the [...]
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Inflation-Protection Funds from Vanguard and Harbor Funds Aim to Keep Pace with Inflation
By MoneyRates team | Money-Rates Columnist
The US consumer has been hit in the pocketbook by sharp increases in food and energy prices causing concern over inflation in the economy. But, despite the continued run-up in commodity prices in oil, natural gas, corn, rice, and wheat, the general level of inflation in the US economy as reported has been moderate - [...]
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Savings Rates Can Still Beat Inflation
By MoneyRates team | Money-Rates Columnist
Many financial analysts have been stating in recent news stories and interviews on CNBC that in today’s economy consumers cannot keep up with inflation by keeping their money in savings accounts. The typical quote refers to savings rates below 2% and inflation rates of 4% or higher -at which point a consumer would be effectively [...]
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Inflation and the Series I Savings Bond
By MoneyRates team | Money-Rates Columnist
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 [...]
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Not all Economists think the Fed Should Lower Rates
By MoneyRates team | Money-Rates Columnist
The Bank of England lowered its key interest rate by a quarter-point to 5.50 percent today marking their first rate cut in more than two years. The Bank of England stated that “Although output in the United Kingdom has expanded at a brisk pace for the past two years, there are now signs that [...]
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Treasury Inflation-Protected Securities
By MoneyRates team | Money-Rates Columnist
Tips on Buying Treasury Inflation Protected Securities (TIPS)
The Treasury Department issues a security called Treasury Inflation-Protected Securities (TIPS) which pay investors a fixed rate of interest set at auction and adjusts principal semi-annually based on the change in the Consumer Price Index for the preceding six months. The U.S. Treasury offers auctions on TIPS quarterly [...]
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Fed Meeting and Interest Rates
By MoneyRates team | Money-Rates Columnist
Borrowers are eagerly anticipating another rate cut from the Fed which will have a nearly immediate impact on their home equity loan payments and credit card payments. While short term interest rates on average have fallen in 2007, some remarkable online bank deals still exist. Money market rates from Evergreen Private Bank (5.40% APY, 25K [...]
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Interest Rates Review - October 5, 2007
By MoneyRates team | Money-Rates Columnist
Interest rates had a mixed weeks with mortgage rates decreasing, bank deposit rates decreasing, and The 50 point interest rate cut by the Federal Reserve may be enough to keep the U.S. economy from sinking as a result of the financial markets’ recent turmoil, Donald Kohn, vice chairman of the central bank, said Friday. Kohn [...]
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Treasury Inflation Protected Securities (TIPS)
By MoneyRates team | Money-Rates Columnist
A lot of headlines after the Federal Reserve action last week have focused on the increased likelihood of inflation emerging in the economy now that the American consumer has been given a lift by the Fed. Investors looking to be protected against large scale inflation in their portfolios have the option of buying TIPS (Treasury [...]
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INTEREST RATE FORECAST
By MoneyRates team | Money-Rates Columnist
This week the Federal Reserve meets and for the first time in over two years Fed watchers are discussing the Federal Open Market Committee (FOMC) lowering short term interest rates as a realistic possibility. The Chicago Board of Trade offers futures contracts on the 30-day Federal Funds Rate (ZQ) with expirations from August 2007 to [...]
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Will the Fed Lower the Federal Funds Rate?
By MoneyRates team | Money-Rates Columnist
Fed watchers have been buried with conflicting economic data as GDP, employment, consumer confidence, and even CPI (consumer price inflation) show an economy under control, while energy and food prices have increased significantly pressuring American consumers. Recent comments by the Fed indicate that the priority of keeping inflation in a narrow range of 1% to [...]
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