FEBRUARY 24, 2023 REPORT INFLATION GOING UP WRONG DIRECTION

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How much should your cash reserve be?

While you’re working, we recommend you set aside at least $1,000 for emergencies to

start and then build up to an amount that can cover three to six months of expenses.

When you’ve retired, consider a cash reserve that might help cover one to two years

of spending needs.

What does it mean to have cash reserves?

Cash reserves refer to the money a company or individual keeps on hand to meet

short-term and emergency funding needs. Short-term investments that enable customers

to quickly gain access to their money, often in exchange for a lower rate of return,

can also be called cash reserves.

What is the US saving rate today?

3.40%

Basic Info. US Personal Saving Rate is at 3.40%, compared to 2.90% last

month and 7.50% last year.

The savings rate is up in February 2023 to 3.40%. 3.40% is only 50% of last

2022 savings rate of 7.50%. IS THEIR A RECESSION COMING??????????

What is the current 6 month Treasury bill rate?

4.92%

6 Month Treasury Bill Rate is at 4.92%, compared to 4.84% the previous market day

and 0.65% last year.

The Federal Government, State Government and the Federal Reserve continue

to stimulate the United States of America Economy. The US economy created

over 1 million jobs in less than 90 days. This was absolutely awesome and was

unexpected. Critical to the Federal Reserve Fund Rate which was only increase

25 basis point. Keep in mind the US economy only need an estimated 98,000 jobs

creation per month to sustain the US economy.

This leaves the consumer continuing to tighten their budget because of inflation,

cutting spending, paying down debt, building cash reserves (the saving rate went up

in January 2023) investing more and earning more income.

The Federal Reserve will increase the Federal Fund Rate at the March 2023 meeting

maybe 75 basis points and increase the target rate to 5.75. This will be a bold

move for the Federal Reserve, but what choice do they have. It isn’t possible

to drive down inflation with a 25 bps increase. As a matter of FACT, 25 bps increase

will not stall out inflation. 50 bps would be a strong message to the economy, but

everyone want inflation to be in check and return to 2% year over year.

The Federal Reserve have a nightmare. They have been behind the curve. The Federal

Reserve have March 2023 to get it right.

Where to buy 1 year Treasury bonds?

TreasuryDirect.gov

TreasuryDirect.gov is the one and only place to electronically buy and redeem U.S.

Savings Bonds. We also offer electronic sales and auctions of other U.S.-backed investments

to the general public, financial professionals, and state and local governments.

Where should I keep cash reserves?

On This Page

High-yield savings account.

Certificate of deposit (CD)

Money market account.

Checking account.

Treasury bills.

Short-term bonds.

Riskier options: Stocks, real estate a

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