Ultra-low CD rates and normal inflation mean money socked away in CDs will have much less buying power buy the time it’s ready to spend.
While I bonds with a zero percent base rate aren’t exactly amazing, they do one thing many CDs can’t right now: keep up with inflation.
In the land of negative real returns, zero is king.
Federal Reserve Chairman Ben Bernanke testified before Congress this week, reporting that the Fed is ready and willing to provide more stimulus to the economy if it’s needed. His fingers are crossed, however, that the economy will move past the transitory bumps that have slowed down growth this year. Before Bernanke’s testimony, a recent Bloomberg