Where to go for income in a low-yield world

If you're on the hunt for yield, be sure to mind the downside

Christine Benz 16 March, 2020 | 1:38AM

Binoculars

Have you heard about the “war on savers”? Well, brace yourself, savers: This war may well get worse before it gets better.

In a surprise move on March 3, the Fed slashed the federal-funds rate by 0.50%, bringing its target range to 1% to 1.25%. The goal was to stoke economic activity and calm the markets in the face of coronavirus-related worries, but the market wasn’t buying it. The major equity indexes all dropped about 3% the day of the rate cut and have been gyrating wildly--mostly to the downside--ever since.

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About Author

Christine Benz

Christine Benz  Christine Benz is Morningstar's director of personal finance and author of 30-Minute Money Solutions: A Step-by-Step Guide to Managing Your Finances and the Morningstar Guide to Mutual Funds: 5-Star Strategies for Success. Follow Christine on Twitter: @christine_benz.