90-Day U.S. Treasury yield Less CPI rate of inflation
As of May, 2022, in the 19¼ years since 2002, the 90-day U.S. Treasury yield had been higher than the 12-month trailing CPI rate of inflation only roughly 23% of the time (53 months out of 231).
fred.stlouisfed.org/graph/?g=OIdZ
That is plainly irresponsible. It is the definition of "punishing the prudent" and it ultimately created the Fed "put." The suppression of short-term interest rates encouraged ill-advised risk-taking, was tantamount to expropriating savers and created a series of Federal Reserve-caused stock market and housing bubbles.
With few exceptions, stocks suffered serious losses in 2022. Bonds of almost all varieties (i.e., corporate, state, municipal and U.S. Treasury) and maturities also suffered losses— the direct result of inflation and rising interest rates.
Both the rapid rise of inflation and the subsequent rise in interest rates were the direct consequence of Federal Reserve policies put in place by Ben Bernanke and his successors, Janet Yellen and Jerome Powell.
Bernanke, Yellen and Powell were all guilty of seeking political favor by instituting monetary policies that pandered to political winds— in direct contravention of what in theory is supposed to be an "independent" Federal Reserve but which in fact was allowed to be politicized.
Unfortunately, the entire U.S. is paying the consequences of the politicization of the Federal Reserve chair appointment process.
90-Day U.S. Treasury yield Less CPI rate of inflation
As of May, 2022, in the 19¼ years since 2002, the 90-day U.S. Treasury yield had been higher than the 12-month trailing CPI rate of inflation only roughly 23% of the time (53 months out of 231).
fred.stlouisfed.org/graph/?g=OIdZ
That is plainly irresponsible. It is the definition of "punishing the prudent" and it ultimately created the Fed "put." The suppression of short-term interest rates encouraged ill-advised risk-taking, was tantamount to expropriating savers and created a series of Federal Reserve-caused stock market and housing bubbles.
With few exceptions, stocks suffered serious losses in 2022. Bonds of almost all varieties (i.e., corporate, state, municipal and U.S. Treasury) and maturities also suffered losses— the direct result of inflation and rising interest rates.
Both the rapid rise of inflation and the subsequent rise in interest rates were the direct consequence of Federal Reserve policies put in place by Ben Bernanke and his successors, Janet Yellen and Jerome Powell.
Bernanke, Yellen and Powell were all guilty of seeking political favor by instituting monetary policies that pandered to political winds— in direct contravention of what in theory is supposed to be an "independent" Federal Reserve but which in fact was allowed to be politicized.
Unfortunately, the entire U.S. is paying the consequences of the politicization of the Federal Reserve chair appointment process.