Axios on the "War on Savers"
Axios writes, "A new low in the war on savers." They tell us, "It's the latest entreaty in the war on savers. Central bank policy is rewarding risk-taking and punishing saving at a record level even as inflation expectations continue to rise. What it means: The negative real yield on government debt encourages investors to move their money into risky assets like stocks in order to earn a return." The article explains, "Real yields have consistently declined despite inflation expectations rising, an unusual phenomenon. On Monday, the expected breakeven inflation rate on 5-year, 10-year and 30-year Treasuries all rose above 2%, the Fed's longtime inflation target, and their highest levels in more than two years. Yes, but: Despite the unprecedented environment, uncertainty and fear have kept most Americans piling into bonds and savings accounts. U.S. companies and municipalities issued a record amount of debt last year at record low rates, and investors bought $183 billion worth of bond funds between January and November. They also held $4.3 trillion in money market funds, according to data from the Investment Company Institute."
