As the Federal Reserve continues to raise the federal funds rate, to slow inflation, Americans are feeling the effects: Savers benefit from higher yields, but borrowers pay more.
Trump’s pressure on the Fed in 2019, to keep Rates at Zero ‘Or Less’ during his presidency, to stimulate the economy, was no laughing matter for me and millions of other American retirees relying on Social Security benefits and high-yield savings for our retirement income. Low-interest rates mean the monthly interest and dividend payments that we rely on are lower (near 0%). This loss of income resulted in reduced consumption and in some cases the inability to pay our bills.
As you might imagine, I’m thrilled to see rising interest rates. They have been artificially low for far too long. And in my opinion, they have been a contributing factor to the inflation that we’re currently experiencing. If Trump had allowed the Fed to manage interest rates without his interference, it’s possible that we might not be in the predicament that we currently find ourselves in.