Author Topic: Real Interest Rates Fall to -1.42% in March 2014 from -1.01% in Feb 2014  (Read 3390 times)

SeattleSun

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Anyone have a good site/graph for "real interest rates" over time, like 10, 20, 30 years.  TIA

Comments of my use of "annual" data, too long a period?  Use of CPI(U) vs. Core or CPE or ???

Comments/suggestions appreciated.

SeattleSun

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Real Interest Rates Fall to -1.42% in March 2014 (yoy) as CPI(U) ticks up to 1.51%.

Using the "annual numbers"

CPI is 1.51% to the second decimal place in March 2014 and the yield on the one year treasury is +0.09%

So the REAL interest rate is:
1 Yr T - Annual CPI = Real One Year Rate of Interest or
+0.09% - 1.51% = -1.42%

So your losing ONLY -1.42% purchasing power a year keeping your money in 1 Year Treasury Bills and -1.51% if you have cash under your mattress.

This isn't enough pain for the evil savers who are hording money in our society so expect the Fed to push for more inflation towards their target range of 2.0 to 2.5% and maybe beyond!
« Last Edit: April 21, 2014, 01:54:35 PM by SeattleSun »

Fred

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Anyone have a good site/graph for "real interest rates" over time, like 10, 20, 30 years.  TIA

This might be useful: http://data.worldbank.org/country/united-states
If you download the CSV file, row 496 shows "Real interest rate (%)" starting from 1960 to 2012.


If you want to see & compare various US Treasury rates over time, you can check out :
http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/Historic-LongTerm-Rate-Data-Visualization.aspx

rawraw

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Does FRED not have a real interest rate data series?

SeattleSun

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fyi