Early 1980s infation was high and at that time 5 year CD were paying 14% and money market yields were up there- not a bad time to have cash available. I understand the Feds rate cuts reducing yields to fight inflation, but how did those cash products yields get so high? Is this a good time to be in cash if inflation is going to grow? What was the CPI inflation rate during that period?
Inflation effect on CD and money market yields.?
I was there. It wasn%26#039;t so great. Yield on a money market account was 15%, inflation was 20% (briefly) and I had to pay taxes on the 15%, so I was losing to inflation and losing to taxes.
Inflation effect on CD and money market yields.?
with CD%26#039;s and Money Markets, after taxes and inflation, you will grow poor slowly
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