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Author: ayduda Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35387  
Subject: Re: Winning the War Against Savers Date: 9/20/2003 3:35 PM
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The Fed has now lowered the best possible rate of return that can be earned on cash to 1% or less - clearly below the rate of inflation.

Actually, inflation measured by the CPI-U is practically zero. I have been looking at for I-bond calculations. The Mar 31 CPI-U was 184.2. The Aug 31 was 184.6 It had been running below that. So the annualized rate is (184.6-184.2)/184.2*12/5 = 0.52%. The Vanguard Tax Exempt MMkt fund is yielding 0.78% so it has a positive real rate!

ayduda
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