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Why Your Emergency Fund Is Losing to Inflation
In this episode of Inflation and Your Money, Lucas and Luna dig into a surprise: your emergency fund — the cash you set aside for a rainy day — is quietly losing purchasing power, even with interest rates still above the inflation rate. They break down the math using today's numbers: with the Fed funds rate at 3.63 percent and the ten-year breakeven inflation rate sitting at 2.25 percent, a high-yield savings account paying around 4 percent might seem like a win, but after taxes and the hidden costs of easy access, the real return is thinner than you think. They compare a plain savings…
The skinny
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