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Fed Rate Hike May Disappoint Cash Hoarders

'Worst of all possible worlds for savers' may push T-bill rates below zero.

By Susanne Walker and Liz Capo McCormick, Bloomberg | Updated on March 09, 2015

Just because the Federal Reserve is about to raise interest rates, don’t expect savers to benefit.

Over the past six years, it’s been practically impossible for depositors and investors in money-market funds to keep up with the cost of living as the Fed slashed rates close to zero in an unprecedented bid to restore the U.S. economy.

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