Where Have All The Good (economic) Times Gone?
This trend in oil prices may be too recent to have much of an impact on the CPI numbers for June that will be released in mid-July. But watch for inflation to perk up in the next couple months if oil prices don't start to subside.
The impact on savings accounts
The type of growth-with-low-inflation environment that the U.S. economy achieved in the second half of the 1990s is considered ideal for both businesses and consumers, and it also plays well for savings accounts and other deposits. Stronger growth would eventually push short-term rates to follow long-term rates higher, so CD, savings and money market rates would start to rise. At the same time, keeping a lid on inflation would allow those interest rates to get ahead of rising prices.
The sudden reversal into a state of disappointing growth and threatening inflation probably won't be the last twist in this convoluted economic recovery. For the time being though, it is enough to count as a setback for savings accounts.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV