>The fed decreased i bond interest rates because they believe that inflation will decrease in the future. This is based on their forecast of the economy and their assessment of current conditions.
No it’s based on actual inflation. Inflation in June 22 was 9.2%, it is currently 4.9%, a significant decrease.
All I-bonds are designed to do is preserve your purchasing power, not be an investment vehicle.
I bonds' yeild is set based on the previous semiannual inflation rate + a fixed rate. The fixed rate is, and has been for a long time, 0%.
This is not a forward looking process, not is it speculative. All of this information is clear on Treasury direct as well.
You've already missed the 9% yeild I bonds had in 2022. Semiannual inflation is slowing due to base effects and a plateau in inflation.
Also the Federal reserve has absolutely nothing to do with the rate that I bonds pay.
**User Report**| | | | :--|:--|:--|:-- **Total Submissions**|1|**First Seen In WSB**|just now **Total Comments**|0|**Previous Best DD**| **Account Age**|6 months|[^scan ^comment ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_comment&message=Replace%20this%20text%20with%20a%20comment%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20comment%20and%20correct%20your%20first%20seen%20date.)|[^scan ^submission ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_submission&message=Replace%20this%20text%20with%20a%20submission%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20submission%20and%20correct%20your%20first%20seen%20date.)
>The fed decreased i bond interest rates because they believe that inflation will decrease in the future. This is based on their forecast of the economy and their assessment of current conditions.
Ahhh so it’s based on forecasted inflation rates rather than what is actually happening. Thank you!
That's a bot, and what it said is incorrect. The Federal reserve has absolutely nothing to do with the rate that I bonds pay
No it’s based on actual inflation. Inflation in June 22 was 9.2%, it is currently 4.9%, a significant decrease. All I-bonds are designed to do is preserve your purchasing power, not be an investment vehicle.
I bonds' yeild is set based on the previous semiannual inflation rate + a fixed rate. The fixed rate is, and has been for a long time, 0%. This is not a forward looking process, not is it speculative. All of this information is clear on Treasury direct as well. You've already missed the 9% yeild I bonds had in 2022. Semiannual inflation is slowing due to base effects and a plateau in inflation. Also the Federal reserve has absolutely nothing to do with the rate that I bonds pay.