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Stick A Fork - June Fed Cut Is Dead

Kaight
  |     |   1,192 posts since 2011

Only Wall Street people believed in it anyway. But with this morning's core CPI coming in at 3.8% year over year, and with last week's strong jobs report:

A June Fed cut? Fuggetaboutid!! Increase the FF rate is what they should do. But that's not gonna happen either. For us savers:

We're getting hosed as usual. Most of us are hard pressed to get 5.5% APY at this point regardless CD term. At that rate of return, after taxes and inflation, we are losing purchasing power like savers usually do.

I have one, just one, jumbo CD remaining paying me 7% APY. It matures next month. It was a special deal when opened and is not anything I can repeat today. At least on that one CD I am maybe breaking even after taxes and inflation.

But on everything else I'm struggling to keep my head above water at 5% APY or possibly just a little more. Those are all purchasing power loss situations, and they occupy the overwhelming majority of my CD holdings.

Between the inflation tax and the Federal income tax, to say nothing of state taxes, it is today not a great situation for us savers.

As far as the 2% inflation dream goes: What A Joke!!

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w00d00w
  |     |   360 posts since 2012
looking at this core inflation reading, core goods deflated a bit month-over-month and core services in most categories were flat. the main outlier for core services was medical care which nearly doubled month-over-month. interested to hear explanations for that substantial increase.
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Robb
  |     |   324 posts since 2018
Kaight to quote Thomas Sowell:

“It is a way to take peoples wealth from them without having to openly raise taxes. Inflation is the most universal tax of all”.

https://www.washingtonexaminer.com/news/679201/thomas-sowell-politicians-steal-your-money-through-inflation/
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