Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

The federal bank pays 4.9% interest rate right now.[0] This was a new policy enacted in 2008 -- it didn't used to pay interest rates on deposits.

That's the "wholesale" savings interest rate. The less you are making compared to that, the more your bank is profiting.

As an aside, the interest the banks earn from this is newly created money.

With 17 trillion dollars currently deposited, that's $833 billion of inflationary pressure every year.

[0] https://www.federalreserve.gov/monetarypolicy/reserve-balanc... [1] https://fred.stlouisfed.org/series/DPSACBW027SBOG



Sorry to ask a dumb question, can you explain this?

> With 17 trillion dollars currently deposited, that's $833 billion of inflationary pressure every year.

specifically, this part, what do you mean by pressure and which way is it pushing

> that's $833 billion of inflationary pressure every year.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: