2010.11.0512:40:00UTC+00Us fED s Recent Step may Help Companies and Hurt Long-Term Saving

News:

• US Fed's recent step will help the US economy recover, but may end up hurting pensioners and other long-term savers, at the extent of helping large companies.
• With dipping bond yields and interest rates at low levels in the near future, investors are likely to struggle earn income from savings unless exposed to riskier assets.

• Fed data shows, average returns on six-month certificates of deposit in the secondary market dipping to 0.35 pct, against 1.74 pct at the start of2009 and over 4.5 pct at the start of 2006.
• Yields on benchmark 10-year bonds have now dropped to 2.52 pct, after generating a return over 4 pct from 2005 to 2008 and over 6 pct in 2000.