[QuarterReptile]

The Fed target interest rate is 4.75% after being 0.25% since the beginning of 2020. The days of free money firehose are done for now.

Am I somehow thinking of the wrong rate here? Heck, my savings account gives 3.5%, like when I was growing up.

[psychlops]

No, you are right as my reply was ambiguous. Inflation is high which (i believe) would usually call for a higher Fed rate as they did in the 80's. As it stands, they are keeping rates relatively low. I just looked it up and Volcker pushed rates up to 20%(!) in 1981.

It is my belief that the strategy is for inflation remain higher in order to drop federal debt.

[QuarterReptile]

I'd say that's the strategy for about 530 of the elected representatives in Congress (and by extension, for just about everyone), whether or not we recognize or acknowledge it.

[nickfromseattle]

> Heck, my savings account gives 3.5%, like when I was growing up.

Which bank?

[QuarterReptile]

Amex