By Steve Goldstein, MarketWatch DC bureau chief
Financial repression is still high, Swiss Re argues.
WASHINGTON (MarketWatch) — Artificially low interest rates have cost U.S. savers $470 billion, according to a report released Thursday.
A key tool in boosting economic activity is to temporarily lower interest rates. But the Federal Reserve Bank, which dropped rates to 0% in December, 2008, has plans to keep them there until at least 2015. Low rates mean that savers, those who have had the discipline and maturity to put money aside, earn virtually nothing on their savings. The Fed is determined to force them to put their money at risk in the stock market. This strong-arm policy is devastating to the elderly, who can't live on no interest and can't risk major losses of their wealth in the stock market.
Mar 25, 2014 9:42 AM ET
Twelve years after retiring as a telephone repairman, Roger Wood clocks 12 to 15 hours a week at a Lowe’s Cos. hardware store near Glen Allen, Virginia.