bank rates

Fed Will Continue To Crush Savings Rates

Would someone please wake me up when the Fed meeting is over?

What? It’s already concluded!

Did anything good happen?

No.

Oh, well I guess that’s what we’ve come to expect.

It seems the all-powerful Federal Open Market Committee got together this week and decided that the economy is not recovering as quickly as it had anticipated just a few months ago.

Everything from GDP and job growth to the housing market and financial industry are beset with more problems, and growing more slowly, than the government-controlled bank thought they would be by this summer.

As a result, the committee released a statement that reiterated its determination to hold short-term interest rates at their record lows for “an extended period.”

When questioned during his post-meeting press conference just how long that might be, Fed Chairman Ben Bernanke said: “We believe we’re at least two or three meetings away from taking any action . . . and I emphasize at least.”

That’s what savers, who have been suffering from record low returns on their CDs and other deposit accounts, are accustomed to hearing.

The Fed will continue its policy to rescue the nation’s reckless and unrepentant banks on our backs well into the fall.

About the same time Ben was holding his news conference, Bankrate was releasing the results of its latest survey of major banks.

The average return on five of the six popular CD rates it tracks hit record lows this week. (That would be 3-, 6-, 12-, 24- and 36-month CDs.)

The average 36-month CD rate fell below 1% for the first time ever, dropping to 0.99% APY.

It just doesn’t get any more depressing than this. Or at least I hope it doesn’t get any more depressing than this.

There are only four more Fed meetings this year – Aug. 9, Sept. 20, Nov. 1-2, and Dec. 13.

It seems no action is planned for the August or September meetings.

So don’t bother to wake me up when they’re over.

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Comments (2)
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  1. A.Bundy said:
    on June 23rd at 10:22 pm

    no point in keeping my money in a bank then. gonna buy a brick of gold. at least that never loses value. can we just adopt the amero now?

  2. Earl said:
    on June 24th at 12:30 am

    Inflation has tripled since last November. The annual rate in November was 1.1% and in May it was 3.6%. When will they raise interest rates? When it has reached 10%??? No wonder people don’t want to spend their money. Spending money would only draw down their principal.