{"id":357116,"date":"2021-10-23T20:17:22","date_gmt":"2021-10-23T17:17:22","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/uitra-low-interest-rates-rip-off-middle-class-savers-economist\/"},"modified":"2021-10-23T20:17:22","modified_gmt":"2021-10-23T17:17:22","slug":"uitra-low-interest-rates-rip-off-middle-class-savers-economist","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/uitra-low-interest-rates-rip-off-middle-class-savers-economist\/","title":{"rendered":"#UItra-low interest rates &#8216;rip off&#8217; middle-class savers: economist"},"content":{"rendered":"<p>&#8220;<strong>#UItra-low interest rates &#8216;rip off&#8217; middle-class savers: economist<\/strong>&#8221;<\/p>\n<div>\n<aside class=\"single__inline-module alignleft\">\n        <\/aside>\n<p>Ultra-low interest rates combined with runaway inflation rip off middle-class savers and retirees, a former top economic advisor to Trump said.<\/p>\n<p>\u201cWe know that people on pensions and we know that people with deposits at the bank, they\u2019re not getting any return. They are being ripped off,\u201d Judy Shelton said at a financial conference Tuesday.<\/p>\n<p>The effective federal funds rates \u2014 which is managed by the Federal Reserve \u2014 stands at\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.newyorkfed.org\/markets\/reference-rates\/effr\">an anemic 0.08 percent per year<\/a>. Meanwhile, 12-month inflation as of September was 5.4 percent,\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bls.gov\/news.release\/archives\/cpi_10132021.htm\">according to the federal Bureau of Labor Statistics<\/a>.<\/p>\n<p>Bank interest rates are lower than the federal funds rate; Chase bank, for instance, now offers just 0.01% per year on savings-account deposits.<\/p>\n<p>That means dollars stashed away in a federally-insured account are actually\u00a0<em>losing\u00a0<\/em>value every year.<\/p>\n<p>That just isn\u2019t fair to Americans who would rather save than risk the stock market, Shelton said. \u201cThey\u2019re doing what I consider, in a capitalist society, the right thing: being responsible, putting money aside,\u201d the longtime Fed critic said.<\/p>\n<p>\u201cLet\u2019s say, someone of modest means, putting money in the bank, and they don\u2019t get a return on that money. I think that\u2019s an immoral policy that feeds into the idea that the system is rigged in favor of the wealthy,\u201d she told high-brow hedge-funders at the posh Plaza Hotel, who ponied up to attend the annual conference of financial sheet\u00a0<em>Grant\u2019s Interest Rate Observer<\/em>.<\/p>\n<aside class=\"single__inline-module alignleft\">\n    <\/aside>\n<p>Shelton, who advised the Trump campaign, is known for her 1989 book,\u00a0<em>The Coming Soviet Crash<\/em>. Later that year, the Berlin Wall fell; the dissolution of the USSR followed in 1991.<\/p>\n<p>Shelton, who has advocated at least a partial-return to the gold standard, said low rates promote \u201cmaking money by playing with money\u201d rather than \u201creal, productive economic growth.\u201d<\/p>\n<p>President Trump\u00a0nominated\u00a0her to the Fed \u2014 but after a testy Senate hearing, the body\u00a0blocked her nomination\u00a0in a close vote.<\/p>\n<p>She noted that some 90 percent of Federal Reserve employee political contributions go to Democrats. \u201cPersonnel is policy, to some extent,\u201d she said. \u201cSo, I think that\u2019s worth knowing.\u201d<\/p>\n<p>Shelton also commented on the recent revelation that Fed Chairman Jerome Powell\u00a0sold millions in stock\u00a0in October 2020 \u2014 right before the market tanked.<\/p>\n<p>Seasoned financial writer Jim Grant asked her whether that \u201cscandal\u201d might presage a change in Fed leadership.<\/p>\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/jerome-powell-3.jpg?quality=90&amp;strip=all&amp;w=1024\" alt=\"Jerome Powell\" class=\"wp-image-19901563\" width=\"618\" height=\"411\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/jerome-powell-3.jpg?quality=90&amp;strip=all&amp;w=1233 1236w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/jerome-powell-3.jpg?quality=90&amp;strip=all&amp;w=925 927w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/jerome-powell-3.jpg?quality=90&amp;strip=all&amp;w=618 618w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/jerome-powell-3.jpg?quality=90&amp;strip=all&amp;w=308 309w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/jerome-powell-3.jpg?quality=90&amp;strip=all 1024w\" sizes=\"auto, (max-width: 618px) 100vw, 618px\"\/><figcaption>Fed Chairman Jerome Powell\u00a0sold millions in stock\u00a0in October 2020 \u2014 right before the market tanked.<\/figcaption><figcaption><span class=\"credit\">Al Drago\/Pool via AP<\/span><\/figcaption><\/figure>\n<p>\u201cI see how damaging it is to see those kind of headlines in the press,\u201d she answered. \u201cI was surprised at the number of transactions that have now come out. [\u2026] I\u2019m not judging, but I think that\u2019s looking more damaging to people who are weighing the odds of may and may not.\u201d<\/p>\n<p>Days after she spoke, the Fed announced new restrictions on trading by senior officials,\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/fed-imposes-new-restrictions-on-officials-investment-activities-11634839207\">according to The Wall Street Journal<\/a>.\n                        <\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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They are being ripped off,\u201d&#8230;<\/p>\n","protected":false},"author":1,"featured_media":357117,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/10\/judy-shelton-1.jpg?quality=90&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[117955,71939,4941,71290,5069,70550,71070,70551,78738],"class_list":["post-357116","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-10-23-21","tag-banks","tag-donald-trump","tag-economics","tag-economy","tag-federal-reserve","tag-hedge-funds","tag-inflation","tag-jerome-powell"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/357116","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=357116"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/357116\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/357117"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=357116"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=357116"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=357116"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}