BestCashCow Blog

Fed Leaves Interest rates Unchanged

The Federal Reserve has left interest rates unchanged and indicated that inflation may be moderating.  While inflation risk is no longer described as elevated, the Fed's statement indicated that there is some risk that inflation may not moderate as expected.

An Improved BestCashCow

Today we are very pleased to announce the launch of the new BestCashCow site.  The new site provides you, our users with even more financial information.  But more than that, it gives you the opportunity to participate in making financial news. 

The new site allows you to share links to financial information anywhere on the web and to publish your original content directly on the site.  You can leave comments on content others have posted and rate which submissions you think are the most valuable.  Every member gets their own Profile page which lets others know a bit more about you and your background. 

Some detailed information about these features is available here. 

If you're looking for the rate and product information from the old site, it's still there under the Products and Rates tab.

We hope you like the new site and look forward to your feedback.

BestCashCow

Bond Yields Shoot Higher.

On June 7 bond yields on the intermediate and long ends of the curve spiked higher on news that Bill Gross of PIMCO is no longer bullish on bonds. While equity markets are reacting negatively to the news (higher yields may jeopardize M&A activity), the US yield curve has become uninverted for the first time in 9 months (which many argue is good since an inverted yield curve usually indicates that a weak economy lies ahead).

Fed Minutes From May Leave Market Observers Guessing.

The Fed minutes, which came out May 30, left some market observers believing that the Fed would need to raise rates to move against inflation before the end of the year, while others believe that the Fed's next move will be to lower rates to guard against a housing collapse and stimulate a slowing economy.

Savings Rates Get More Attractive

New and existing entrants are offering interesting savings rates that are guaranteed for several months as well as short-term CD rates.

Series I Bond Rates Reset a Little Lower

Series I bonds reset on May 1 so that new bonds will pay a rate of 3.74% for the next six months. The fixed rate component was lowered to 1.30% and the variable component is 2.44%. While these bonds are tax free at the state and local levels and federal tax is deferred until sale (or final maturity), they do not outperform other cash equivalents and are illiquid for the first year (and have a penalty if sold in fewer than 5 years). They therefore should only be purchased as a long-term inflation hedge.