Summary
- Even after rising in recent months, short-term interest rates remain below the level suggested by an inflation rate of 2.9% and relatively strong economic growth.
- A more reasonable Federal Funds Rate would be in the range of 3.25% to 3.50%, which is what the Federal Reserve is projecting for 2020.
- Interest rates are not too high in July 2018. In fact, today’s level still punishes savers and people living on fixed incomes.
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