P2P Forum

General Category => Investing - General (not P2P) => Topic started by: SeattleSun on April 20, 2014, 11:00:00 PM

Title: Real Interest Rates Fall to -1.42% in March 2014 from -1.01% in Feb 2014
Post by: SeattleSun on April 20, 2014, 11:00:00 PM
Anyone have a good site/graph for "real interest rates" over time, like 10, 20, 30 years.  TIA

Comments of my use of "annual" data, too long a period?  Use of CPI(U) vs. Core or CPE or ???

Comments/suggestions appreciated.

SeattleSun

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Real Interest Rates Fall to -1.42% in March 2014 (yoy) as CPI(U) ticks up to 1.51%.

Using the "annual numbers"

CPI is 1.51% to the second decimal place in March 2014 and the yield on the one year treasury is +0.09%

So the REAL interest rate is:
1 Yr T - Annual CPI = Real One Year Rate of Interest or
+0.09% - 1.51% = -1.42%

So your losing ONLY -1.42% purchasing power a year keeping your money in 1 Year Treasury Bills and -1.51% if you have cash under your mattress.

This isn't enough pain for the evil savers who are hording money in our society so expect the Fed to push for more inflation towards their target range of 2.0 to 2.5% and maybe beyond!
Title: Real Interest Rates Fall to -1.42% in March 2014 from -1.01% in Feb 2014
Post by: Fred on April 20, 2014, 11:00:00 PM
from: SeattleSun on April 21, 2014, 12:55:13 PM
Title: Real Interest Rates Fall to -1.42% in March 2014 from -1.01% in Feb 2014
Post by: rawraw on April 20, 2014, 11:00:00 PM
Does FRED not have a real interest rate data series?
Title: Real Interest Rates Fall to -1.42% in March 2014 from -1.01% in Feb 2014
Post by: TravelingPennies on July 11, 2014, 11:00:00 PM
fyi