The Federal Reserve slashed interest rates to effectively 0% at the beginning of 2020 to combat the sharp drop in demand and sharp rise in unemployment caused by the Covid-19 pandemic and shutdown of businesses across the country. Before 2020 rates had risen to just over 2%, but for the better part of the decade interest rates have hovered at and around 0%.
You noted that inflation has caused the equivalent of a 6-8% pay cut for many workers. Well, you "working people" elected the Democrats, so now live with your pay cut! This is exactly what any thoughtful person with an education in economics predicted.
Could you do something on what increased interest rates means to the lump sum value of someone's pension. I retired quickly in March because I wasn't willing to have my lump sum payment go down enough that it would be like working all or most of the year for free. I mentioned it to another co-worker and he agreed with that thought and announced his retirement too. Were we right, or did we not understand and retired early for an unfound reason? I was told an increase of 1% in interest rates could mean the loss of 10% of your lump sum payment and that could be $50K-$75K in our cases. More if the Fed goes higher than 1% increase before next Spring.
debt free (except for mortgage) and refinanced the mortgage for very low rates, just waiting raising interest to get inflation down. also my growth stock probably will tank a bit..
The Federal Reserve Is Raising Interest Rates. Should You Be Worried?
You noted that inflation has caused the equivalent of a 6-8% pay cut for many workers. Well, you "working people" elected the Democrats, so now live with your pay cut! This is exactly what any thoughtful person with an education in economics predicted.
Could you do something on what increased interest rates means to the lump sum value of someone's pension. I retired quickly in March because I wasn't willing to have my lump sum payment go down enough that it would be like working all or most of the year for free. I mentioned it to another co-worker and he agreed with that thought and announced his retirement too. Were we right, or did we not understand and retired early for an unfound reason? I was told an increase of 1% in interest rates could mean the loss of 10% of your lump sum payment and that could be $50K-$75K in our cases. More if the Fed goes higher than 1% increase before next Spring.
debt free (except for mortgage) and refinanced the mortgage for very low rates, just waiting raising interest to get inflation down. also my growth stock probably will tank a bit..