Economic Stimulus Cost US Savers Trillions of Dollars

Federal Reserve data reveals that its post-crash interest-rate manipulation “economic stimulus” actually stripped American savers of trillions of dollars by forcing down interest rates.

The Federal Reserve cost American savers — usually older Americans — more than $550 billion per year in lost interest-income, and will likely cost young taxpayers much more once President Barack Obama’s huge government debts have to be repaid at normal interest rates, said Seeking Alpha’s financial analyst, Peter Knight.

Banks normally pay interest on deposits close to the consumer price index. But since 2010, the deposit rate has been far below the CPI, in what amounts to the longest period ofnegative rate of return in U.S. history. The Federal Reserve’s “economic stimulus” was really “interest rate suppression,” said Knight.

The federal reserve’ stimulus was launched alongside Congress’s better-known 2009 spending stimulus.

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