Unfortunately it doesn't. It's artificially keeping them up because 0% is the ef... | Hacker News

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		imtringued on June 9, 2021 \| parent \| context \| favorite \| on: Research suggests that when the rich bank, the res... Unfortunately it doesn't. It's artificially keeping them up because 0% is the effective lower bound and interest rates should be well into negative territory because savers don't care that their savings do not represent real wealth in the economy.

pedro_hab on June 9, 2021 [–]

No it isn't, the FED is buying mortgages and treasuries to keep the rates from rising.

How can you say rates would be higher absent the FED buying it?

Rates aren't negative nominally, but they are negative taking inflation into account.

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