Show Some Sympathy For Retirees: Schwab to Fed

April 5, 2010

In an opinion piece in The Wall Street Journal, Charles R. Schwab, chairman of Charles Schwab Corp., spelled out the grave danger that the near-zero fed funds rate poses for senior citizens. With their purchasing power effectively eviscerated by 76%, retirees are "financially starving," Schwab said. The Schwab founder explained that even with the inflation rate effectively at zero, an investment in a one-year CD today pays a mere 1.3%.

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