Re:Joint Statement by the Department of the Treasury, Federa...
by unicornmama on Monday March 13, 2023 @07:28AM
(#35134192)
Inflation strongly determines interest rates. You are getting 5% return because inflation expectations are high which caused the Fed to raise interest rates. When you see 5% risk free, you assume high inflation. The price falls because of the risk free rate, which is caused by high inflation, which causes drop in purchasing power.
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