Bernanke on Why the Fed is not Crushing People on Fixed Incomes

Darren Gersh

 

 

by Darren Gersh, Washington Bureau Chief

If you are one of those people who thinks the Fed has hurt your income by crushing returns on savings, Federal Reserve Chairman Ben Bernanke urged you to take a larger view:

“We are certainly paying attention to the effects of low interest rates not only on savers but on other financial institutions. … From the point of view of savers, for most savers, something less than 10 percent of all savings by retirees is in the form of fixed-interest instruments like CDs. Remember, people also own equities, they own money-market funds, they own mutual funds, they have 401Ks and a variety of things and those assets are assets whose returns depend very much on how strong the economy is. So in trying to strengthen the economy, we are actually helping savers by making the returns higher as we can see in the stock market, for instance.”

Ben Bernanke, Feb 29, 2012, at House Financial Services Committee


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