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Chart of the Week 2-8-2023

| February 08, 2023

Even as the Federal Reserve raised its benchmark rate by 25 bps last week, its eighth hike since 2022, savings account rates have remained low. With inflation at its highest level in four decades, the cost of holding cash is magnified as investors are left with a reality of negative real savings rates. We believe those with significant cash holdings can find similar risk levels in short-duration fixed income and more attractive yields.

Source: Federal Reserve, FDIC, and Goldman Sachs Asset Management.