What the experts say

Bad news for savers; Does Apple still look ripe?; What stock buybacks tell us

Bad news for savers

Savers will likely be penalized for their prudence for at least the next few years, said Margaret Collins in Bloomberg.com. The Federal Reserve announced last week that it plans to keep short-term interest rates near zero through 2014. That may help stimulate the economy by rewarding borrowers, but it also punishes savers, particularly retirees, who have already suffered through several years of low rates that don’t beat inflation. People socking money into low-risk investments like savings accounts, money-market funds, and short-term CDs are getting a national average of just 0.59 percent interest, says market analyst Dan Geller, the lowest since he began tracking such data, in 1990. Fed Chairman Ben Bernanke said the central bank is mindful of the plight of savers, but that a growing economy will help them best. “Savers in our economy are dependent on a healthy economy in order to get adequate returns,” he said.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up