Fed Meeting: Fourth Straight 75-bp Rate Hike - Strategies for Savers
At the conclusion of the FOMC meeting, the Fed announced its fourth straight 75-bp rate hike. The target federal funds rate is now 3.75%-4.00%. This is now far above the peak of the last rate hiking cycle (2015-2018). We haven’t seen federal funds rates this high since early 2008.
Below are excerpts from today’s FOMC Statement that covers the rate decision:
the Committee decided to raise the target range for the federal funds rate to 3-3/4 to 4 percent
In the rate decision paragraph, there are hints that the Fed is preparing to slow the pace of the rate hikes. The excerpt below is what was added from the previous meeting statement:
The Committee anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time. In determining the pace of future increases in the target range, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.
All voting members voted in favor of today’s policy action.
There is no update to the Fed’s Summary of Economic Projections (SEP) at this meeting. The next Fed meeting on December 13-14 will provide SEP updates, including the federal funds rate dot plot.
More To Come
I plan to update this post later today with additional commentary on the Fed meeting and the Fed Chair press conference. In addition, I’ll discuss my take on deposit account strategy in this rising rate environment. I just wanted to publish this initial post so that comments can begin.
Update: The following content was added at 9:34pm EDT on Wednesday, November 2, 2022.
Post-Meeting Press Conference
That new addition to the FOMC statement opened the door to a smaller 50-bp rate hike in December. At the press conference, Fed Chair Powell opened the door to a higher terminal policy rate than what the Fed had suggested in September via the SEP. The dot plot of that SEP pointed to a peak rate of 4.50%-4.75% by the end of 2023. In Fed Chair Powell’s opening remarks, he warned that rates may have to go higher:
There is significant uncertainty around that level of interest rates. Even so, we still have some ways to go, and incoming data since our last meeting suggest that the ultimate level of interest rates will be higher than previously expected.
So even if the Fed transitions to a 50-bp rate hike in December, it may not mean that a rate pause is near. In the Q&A session, Fed Chair Powell tried to downplay any near-term transition to a pause in rate hikes:
So I would also say it's premature to discuss pausing. It's not something that we're thinking about. That's really not a conversation to be had now. We have a ways to go.
It’s not quite the “we’re not even thinking about thinking about” language that Fed Chair Powell used in 2020 when asked about rate hikes, but it’s similar, and it suggests that we have at least several more months of rate hikes of at least 50 or 25 basis points in size. Another 125 bps of rate hikes would increase the target federal funds rate to 5.00%-5.25%, which is close to the peak rate (5.25%) seen in 2006 and 2007 when online savings account rates peaked in the 5% to 5.50% range.
Once the Fed pauses on rate hikes, the next question is how long will the pause last. In 2019, the pause lasted just over seven months. Fed Chair Powell ended his opening remarks suggesting that we shouldn’t expect a quick pivot to rate cuts:
Restoring price stability is essential to set the stage for achieving maximum employment and stable prices in the longer run. The historical record cautions strongly against prematurely loosening policy. We will stay the course, until the job is done.
The Fed doesn’t want to repeat the 1970s when they didn’t stick with tight monetary policy to end high inflation, and that eventually forced the Fed, led by Paul Volcker, to hike rates to very high levels in the early 1980s.
Future FOMC Meetings
The next three FOMC meetings are scheduled for December 13-14, January 31-February 1, and March 21-22. The December and March meetings will include the Summary of Economic Projections (SEP).
Treasury Yield Changes
The Fed meeting didn’t have much impact on Treasury yields. Short-dated Treasury yields were down slightly today while long-dated yields were up slightly. The 2-year Treasury yield had the largest change, rising 7 bps to 4.61%.
The yield changes since the last Fed meeting are significant. Yields of all durations had sizable increases. The short-duration yields had the largest gains with the 1-month yield rising 111 bps, the 3-month rising 91 bps, and the 6-month rising 71 bps. The long-duration yields had smaller gains, but they were still sizable with the 30-year yield rising 75 bps, the 10-year yield rising 59 bps, and the 5-year yield rising 56 bps.
All Treasury durations except the 1-month now have yields above 4%. The 1-year yield is 4.76%, which is the highest yield of all durations. It might not be long before we see 5%.
In general, the Fed’s rate hikes are putting more upward pressure on short-dated Treasury yields than the long-dated yields. The result is a yield curve that is becoming more inverted. The spread between the 10-year yield and the 3-month yield (10y-3m spread) was positive after the last meeting (+20 bps). Now it’s negative (-12 bps). The spread between the 10-year yield and the 2-year yield (10y-2y spread) remains negative. Oddly, today’s 10y-2y spread equals the 10y-2y spread after the last Fed meeting (-51 bps). Historically, the more inverted the yield curve, the more likely that a recession follows within the next year.
The following yields are from the Daily Treasury Par Yield Curve Rates from the Treasury website.
- Sep 21 (last mtg) → Nov 1 → Nov 2
- 1-mo: 2.59% → 3.72% → 3.70%
- 3-mo: 3.31% → 4.23% → 4.22%
- 6-mo: 3.86% → 4.58% → 4.57%
- 1-yr: 4.08% → 4.75% → 4.76%
- 2-yr: 4.02% → 4.54% → 4.61%
- 5-yr: 3.74% → 4.27% → 4.30%
- 10y: 3.51% → 4.07% → 4.10%
- 30y: 3.50% → 4.14% → 4.15%
Future Deposit Rates
Online savings account rates have generally lagged the Fed rate hikes, and the lag has been greater than what we saw in 2018. The speed of this year’s Fed rate hikes may have contributed to this lag. If that is the case, we will likely see online savings account rates rise for some time after the last Fed rate hike until the top online savings account rates are close to the upper limit of the target federal funds rate. Both in 2006/2007 and in 2018/2019, top online savings account rates were close to the upper limit. If that does occur in 2023 and the target federal funds rate reaches around 5%, we should see top online savings account rates increase to near 5% in the first half of 2023.
The path of CD rates is more uncertain. Treasury note yields have often been early indicators of where CD rates are headed. Brokered CD rates are first to follow Treasury yields, and direct CDs from online banks and credit unions follow with some more lag.
Inflation and recession expectations drive long-dated Treasury yields more than Fed rate changes. As can be seen in the Treasury yield changes above, long-dated Treasury yields have risen since September even though they haven’t risen as much as the short-dated yields. You can see the bumpy path of 5-year Treasury yields this year in this chart that compares the yields of the average 5-year online CD to the 5-year Treasury note. If recession worries grow, these long-dated Treasury yields may fall back below 4%. If that happens, banks and credit unions may not be in a rush to offer new high rates on their CDs.
As I mentioned after the last Fed meeting, we may get to the point in which top online savings account rates are near or above the top CD rates. It’s going to be hard to justify locking into a long-term CD in this case. However, those who realize how fast savings account rates can fall, won’t dismiss CDs.
The 2022 rise of rates can be seen in the charts of the average online savings account rates and the average online 1-year and 5-year CD rates.
Strategies for Savers to Maximize Cash Yield
It’s hard to find CDs appealing when rates are rising fast. As I mentioned above, rates will eventually peak and then start falling. We should first see this decline in Treasury yields. That can give savvy savers time to lock into long-term CDs at relatively high rates. This condition occurred in 2019 before the first Fed rate cut and in 2020 before the emergency Fed rate cuts in March 2020.
CDs with Mild Early Withdrawal Penalties
Of course, you never can be sure if rates have peaked. To ease concerns, look for CDs with mild early withdrawal penalties (EWP). For long-term CDs, a mild EWP would be six months or less of interest. If rates do go higher, a mild EWP will make it less costly to close the CD and move the funds into an account with a higher rate.
No Penalty CDs to Boost Savings Account Yields
If you’re going to wait for rates to peak, liquidity will be important so that you can quickly fund a CD before rates fall. Online savings accounts, money market accounts and checking accounts with the highest rates would be best. You can sometimes get an additional boost in yields with little loss of liquidity by using no-penalty CDs. Today’s rate hike of Ally’s No Penalty CD is a good example. Ally customers can use the 11-month No Penalty CD to get an extra 60 bps of yield with very little loss of liquidity.
If you do use no-penalty CDs, just be sure to monitor the rates. If savings account rates rise above the no-penalty CD rate or if higher no-penalty CD rates become available, you should close the no-penalty CD and move that money.
Add-On CDs for Low-Rate Insurance
Another useful strategy is to acquire as many long-term add-on CDs as you can. Open these with just the minimum deposit. If rates rise well above your add-on CD rate, you can just let the add-on CD continue without additional deposits. With a small minimum deposit, this won’t cost you much. On the other hand, if rates do fall before the add-on CD matures, the value of the add-on CD grows as rates fall. In this case, the additional deposits into the add-on CD could earn you a lot more than opening a new CD. Long-term add-on CDs can be a great low-rate insurance policy, offering some protection against falling rates. Mountain America Credit Union just came out with higher rates on its CDs, including its add-on CDs (called Growth Certificates). The two best deals are its 24-month CD (4.50% APY) and its 60-month CD (4.00% APY).
Treasury Bills/Notes and Brokered CDs
Currently, Treasury bills/notes and brokered CDs have rate advantages over the vast majority of direct CDs. There are a few CD Specials which may have higher rates for a specific maturity. Treasury bills and notes also have some tax advantages and they can be easier to manage, especially in IRAs. The downside is an uncertain cost if you want to access the funds before maturity. Unlike direct CDs, there’s no fixed early withdrawal penalty.
Series I Savings Bonds
As I described in my Tuesday post on the new I Bond rates, new I Bonds will have a composite rate of 6.89%. This combines an inflation rate of 6.48% and a fixed rate of 0.40%. This I Bond fixed rate is a significant improvement over the 0% fixed rate that has been in effect since 2019. I Bonds that are purchased through April 2023 will earn an annualized yield of 6.89% for six months. The rate for the next six months will depend on inflation from September 2022 through March 2023. In mid-April 2023, we’ll be able to calculate the next I Bond inflation rate.
The main issue with I Bonds is that you’re limited to just $10k per year per SSN (plus $5k with your federal tax refund). I have more details on I Bonds in this post. There are ways to buy more I Bonds. This article at The Finance Buff describes how a married couple can buy up to $65k in I Bonds each calendar year via trust and business accounts.
Treasury Inflation-Protected Securities (TIPS)
TIPS bonds are an alternative to the I Bond. Like they I Bond, they provide inflation protection. Unlike I Bonds, there are no purchase limitations. The appeal of TIPS has gone up this year as their real yields have risen above 0%. Currently, the real yields are around 1.60% (see Daily Treasury Par Real Yield Curve Rates). Two useful resources on TIPS are this post by Harry Sit of The Finance Buff, and this Q&A on TIPS by David Enna of TIPSWatch.
Combination of All of the Above
It’s wise to remember that no one can accurately predict future interest rates. So if you want to keep things simple, a CD ladder of long-term CDs is always a useful strategy for your safe money. If you’re worried about being locked into a low-rate CD if rates should happen to rise, choose long-term CDs with early withdrawal penalties of no more than six months of interest. If you are concerned with rates rising very fast in the next year, keep more in online savings accounts and no-penalty CDs after you have maxed out what you can contribute to I Bonds.
For your safe money (with no risk to principal), a combination of I Bonds, TIPS, T-bills/notes, online savings accounts and CDs can still make sense.
1st level of support that I see for the SPX is at 3750ish.
Robb, draw a line from the top at 4818, connect it at the high on 3/29 and the high on 8/16 and extend it all the way..... then a line from the low on 1/24 connect it at the low on 2/24and again at 5/12 and extend it all the way.... next a line at the top 8/16 connect it at the high on 9/12 and extend and again at the high on 10/24 and extend it down... you'll see what my chart looks like.
https://www.bls.gov/opub/ted/2000/Jan/wk3/art01.htm
2.7% was the max CPI in Dec. 1999, min was 1.6% in Feb., whereas the average for the year was 2.2%. The average so far for 2022 is 8.3%.
The new statement hinted at that policy change, saying when determining future hikes, the Fed “will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.”
You can't fight 16% inflation with a 4% federal funds rate. It's a farce.
The answer is to cut federal spending and take the federal jackboot off the neck of the private sector so it can start producing again, not to force the economy into depression.
You can't put "cash to work" now at 16% return. That's the point. By spending, taxing and regulating the economy into oblivion this Congress and White House are putting savers and investors in an impossible situation. Another way to put it is that they are confiscating your wealth since they leave you with no alternative but to lose. And they have some people cheering that rates are increasing while they are being robbed and don't even realize what is happening.
Wow! Only 31% more than it cost on the day the Democrats took over Washington! Now that's an accomplishment to celebrate!
There's your 16% plus inflation per year in a nutshell. The real number.
And before you say you're not crazy about Biden, I'll mention that 99%+ of the Washington Democrats supported every single one of his policies up and down the line for the last 2 years. So if you're not crazy about Biden you are also not crazy about the Democrats.
But since crazy is you're specialty, I'll defer to you on this topic.
Cherry pick two components of inflation instead of the BLS's 80,000 items.
The answer is to raise taxes on the freeloading corporations that pay no tax.
And, no fake offshore domiciles.
If you make your money in the US, pay some taxes in the US.
Because the price increases of chia seeds and left handed over-head framis valves is what's really meaningful to most people.
Appears oil companies are doing just fine, using their own jackboots to squeeze the consumer's wallet as much as possible. It appears for now our companies are more driven by price than production.
https://www.pbs.org/newshour/show/oil-companies-post-massive-profits-as-consumers-feel-squeeze-from-high-gas-prices 11/1/2022
Hipsters like yourself need to transition to coconut, almond, oat, rice, cashew, macadamia, quinoa and hemp milk.
Yup, pour some cannabis sativa milk into your coffee.
Happy days are here again.
And, if you make you're own hemp milk with the right ingredients, you won't worry about those things much.
milty great idea! Why not substitute a cave for your house and experience a net inflation of -50%?!
You should work for the government. GMTA.
That's exactly how the CPI works. Inflation number makes the government look too bad this time? No problem, just substitute hamburger meat for steaks in the inflation formula and that means there's no inflation! Abracadabra!
https://www.youtube.com/watch?v=-Qvwfy0MVJw
The PCE does (which lowers the inflation number, which is why the FED likes it).
So, get your terminology straight, Jack.
It is disappointing, but not a surprise, that PD misstates how CPI is calculated.
In reality:
https://econbrowser.com/archives/2008/09/shadowstats_deb
It would apparently surprise many Americans, how food remains inexpensive in America, for people willing to learn how to feed themselves. Healthier than restaurants also.
I wish people would focus more on real life, than celebrity and wealth culture.
Does your Aldi have a senior discount day? Which day?
Our other regular store is Target. They regularly have 20% discounts on food, 10% discounts on Target prepaid cards, 5% for using a Target credit card, other Target Circle discounts, nearly every week
Also have a family member that works there. 10% off everything, another 20% off fresh and frozen fruits and vegetables every day. Some of their foods have increased, but some have not, for years. And on a good day, the discount is 40%+.
Of course, they have trouble hiring people willing to work.
People who don't work, will explain that "government benefits" also stimulate the economy. So why work? Just need to increase those benefits, because of inflation.
Btw it could also be that you don't know how to lower your costs or that you don't know how to shop or maybe you just like to whine a lot...;)
Trumpsters need not apply.
Worse than buying lottery tickets.
All your "personal situation" tells you is a subjective how much suffering you feel from inflation, not the objective how much purchasing power you are losing to inflation. The facts of inflation don't care about your feelings.
16 percent trimmed-mean CPI is a weighted average of one-month inflation rates of components whose expenditure weights fall below the 92nd percentile and above the 8th percentile of price changes. Benefits: By omitting outliers (small and large price changes) and focusing on the interior of the distribution of price changes, the median CPI and the 16 percent trimmed-mean CPI can provide a better signal of the underlying inflation trend than either the all-items CPI or the CPI excluding food and energy (also known as core CPI). Source: https://www.clevelandfed.org/indicators-and-data/median-cpi
Honestly, I'm beginning to think that the purely political discussions were less divisive than the somewhat more recent “inflation camp wars” are becoming.
The "16 percent trimmed-mean CPI" is completely unrelated to the claim of 16% inflation. The trimmed-mean CPI is simply another way to measure inflation, by excluding outliers.
And of course, it is a separate calculation, from the widely reported CPI.
So there aint much fat to cut for me.
Food inflation is high , but frankly, how much can you eat?
Morgan Stanley Bk N A
Callable 11/[email protected] | Callable | Death Put | | MS | Semi-Annual Pay
Eggs are now at $4 a dozen. Last month $2.89.
Costco eggs. 4.99 for 2 dozen
But the biggie for my family was moving from the midwest to the south 9 months ago. Income went up 20%, cost of living went down 20%. Nice 40% raise, especially staying with the same company, so pension still in tact. Yes, a real pension.
The stores cause more inflation with their markups, an example... years ago we used to sell eggs to the grocery stores at let's say .69 a dozen for large give or take and the stores would mark it up say 40% to .99 a dozen, they would have a profit of $9 for a 30 dozen case... now prices are all over the place but last week we sold eggs to the stores for $2.97 a dozen and they then mark it up 40% so now they will sell them at $3.99 maybe higher depending on the store soooo the $9 profit they used to make on a 30 dozen case is now up to a $36 profit or more per that same case.... I won't even tell you the profit they make on specialty eggs...;)
My family doesnt like me either. ;)
The spread does change over time, so there is principle risk. I can live with that given the 100bp premium to most money market funds.
The downside would be an exogenous event that has the world running for Treasuries out of fear. The rate would drop much more quickly than money funds. They work well in a rising rate environment, but they underperform when rates drop. I don't see that happening anytime soon.
Treasury is working toward issuing FRNs that float off SOFR, the replacement for LIBOR. That is likely to also be an attractive alternative.
Let's wait until this month's inflation numbers come out. Then we'll know what's going to happen in December. My best guess is sometime in 2023. Between Jan-March. I think we should see high 5's by then. Maybe even some 6's. Keep perusing this board now and then to get a general idea of what's happening.
I have met so many people who will keep cash liquid for 6-12 months waiting for the peak CD rates. Even after they think they locked in the peak rate, I show them the final maturity dollar amount of their new CD, then do the math if they would have taken the lower APY from 6-12 months ago and add in the 6-12 months of interest they missed out on. Most of the time, the numbers are about the same, or the difference isnt worth the "work" they put in. Then, not to mention, you dont know what rates will be at the end of the 5 or 7 year CD. So, what if by opening the 5 year CD exactly 12 months ago, it matures during another peak time(?). For example, I opened some 5 year CDs in 2018, which will mature in 2023 (which is shaping up to be perfect timing)..... BUT when I look back, rates peaked in 2019 (oh crud, I missed out on all that extra money by locking too early?!), which those will mature in 2024....which COULD BE too late...we may be in a recession by 2024 with ZIRP back. You see what I mean? But this is all just my opinion.
The mistake many on this board are making is buying brokerage CDs where the drop in the market value of the CD if rates go to 6% or higher will be crushing. Effectively, you will be stuck in those CDs for the duration of the term. There are a handful of posters who have been buying these brokerage CDs for the last two months. They are being seduced by the higher rates, something they might regret later on.
1-- If the interest rate goes up and the value goes down too much you won't want to sell because of the hit you would take, also if the interest rates go down and the value goes up you probably still won't sell because the rates are down that you would get too so if you buy brokered CDs you should plan on keeping them.
2--imo you should always have a mix of direct CDs and brokered CDs, I like direct CDs for that reason and if you want to break a direct CD and have a low enough EWP that could be beneficial.
3- I also like brokered CDs because it's much easier to stick them in my trust account, otherwise I would have to open up a trust account at numerous credit unions or banks and a lot of them won't do it.
4- another thing I like about brokered CDs is they are much easier to stick in my Vanguard IRA then opening a bunch of IRA accounts at individulal institutions and them mess with transferring funds.
5- Not a problem for me because I keep a record but if you can't give maturity instructions before maturity, some you can and some won't let you, however if you forget they could be renewed at a lower rate... with brokered CDs that is not a worry.
6- I ladder my CDs so I always have some maturing... I have about 20 maturing the rest of this year and 2023.
7-- Waiting for the highest rate sounds a lot like market timing, doesn't always work out. I look at buying CDs in the same way I look at buying stocks or for me mainly index ETFs... many people wait and wait for the bottom and then are never able to pull the trigger because they keep waiting for lower prices so in the same way you ladder CDs is the same way as buying stocks as they get more reasonable... no one knows where for sure either are going so you look longer term... short term thinking again does not always work out.
8-if someone knows hoe much it cost them to live then that person should be able to figure out what they need from their investments.
9- the most important thing you are leaving out is, how much does the person have to invest... if you don't have a lot of money to invest maybe waiting for higher rates so you could put it all in at once is best but say the investor has quite a bit to invest, changes everything.
10- finally, if you are the kind of CD investor that feels the need to take an EWP penalty then brokered CDs aren't for you,... I don't happen to be that kind of investor mainly because of laddering....not that I have never taken an EWP because I have but very rarely so all the more reason to have both.
Say you open a $100k 4 year CD with your 270 day penalty so basically a 9 month penalty. The penalty would be about $3744, if you closed after 1 year that $100k CD would have earned about 1.25% for the year, now if in a taxable account you can take the $3,000 loss off your taxes, I don't know your tax rate so you would have to figure that out. If you want to buy another 4 year CD to make up that loss in a year you would need the new CD to pay you that much more than the old one in a year's time. If you kept the CD 2 years and then closed it you would have earned about 3.12% a year for those 2 years after the EWP is taken, a little better when you consider the deduction on your taxes..
I might not be exact because I did it quick on paper but I think I'm pretty close.
For me this is probably good enough not to say they cant go higher.
ps I don't see it mentioned much here but my take on inflation is that it's predominantly caused by squeezing of our energy supplies...as almost everything has material/transportation costs associated with the cost of energy. I suspect the "new new" costs will stabilize if/when the supply/demand of gas/oil works itself out to an equilibrium. I don't anticipate any deflation and thus our collective net worth just took a 15% permanent hit.
Did you mean comment #127?
Haha! Good one! When Biden took office the real GDP growth rate was 6.3%. Now it's 2 something after several quarters of negative growth and that's a "strong" economy? You have quite a sense of humor there Mak, I'll give you that.
Terrible job situation.
The Civilian Labor Force Participation Rate (the real measure of how the job market is doing) FELL from September to 62.2 in October. It was 63.4 in February 2020 just before the China virus hit. Going on 3 years and the CLFPR is going nowhere.
Too bad the numbers don't include the Democrat's new IRS agents or it would probably be about 90. But we'll still be paying the taxes to go with that anyway.
Please post where the former administration used the CLFPR as the real measure. (All I recall is the constant cheer leading for the stock market and demanding negative Fed rates.) However, it was 63.0 in March 2016, falling to 60.2 in April 2020, only shortly after the Trump Easter Virus hit and surprisingly did not go away.
Regarding those 87K IRS agents you resent, which will replace the 50K that are retiring, perhaps knowing that the U.S. military employs 2.2M (active and reserve), FBI: 35K, CIA: 22K, NSA: 32K, DHS: 240K, plus thousands in other civilian departments will ease your troubled mind as to just how insignificant adding 37K jobs to the IRS really is. Well, unless you happen to be someone who undervalues his assets for taxes and overvalues them for loans.
Btw.. I don't watch any cable news shows, maybe you should turn fox off.
Actually, this website is pretty cartoonish.
On another financial website that I follow, some right wing fool started spewing racist conspiracy theories.
The owner of that site promptly deleted the comment and made the following statement.
"Dear readers: Some of the comments on this article were getting off topic and divisive. Please stay on topic. Thank you."
This site doesn't have the spine to enforce it's own comments policy.
I used to own a few state general obligation munis but they are done now, any recommendations on munis or muni bond funds?
Enjoy it while it lasts, we are all on the hook for $1.4 trillions a year just for the interest the treasury pays to the savers. After that, the party is over, the dollar and the savings will be nullified by a self destruction and euphoria and celebrations on the high interest rates on the savings.
https://www.zerohedge.com/markets/us-debt-servicing-costs-skyrocket-14-trillion-interest-payments-deck
In late May, the Congressional Budget Office (CBO) projected that annual net interest costs would total $399 billion in 2022 and nearly triple over the upcoming decade, soaring from $442 billion to $1.2 trillion. However, if inflation is higher than CBO’s projections and if the Fed raises interest rates by larger amounts than the agency projected, such costs may rise even faster than anticipated.
When I used to belong to a blog for stock trading anyone that posted a zero hedge article was banned... true story.
As of the 2020 census, the number of whites went down for the first time ever.
There were around 191.7 million white people in the U.S. last year, down from 196.8 million when the last census was taken in 2010.
The share of the white U.S. population declined further from 63.7 percent in 2010 to 57.3 percent in 2020.
Once whites become a minority they have no use for democratic elections.
Now that the writing is on the wall, the guns will come-out (again).
https://www.statista.com/chart/25535/us-population-by-racial-ethnic-group/
I'm asking since declining Treasury yields leads to lower CD rates.