Letter: Fed needs to raise interest rate

The Federal Reserve Board needs to raise the interest rate an additional 1%. America has 75 million persons over age 60. Many, like myself, are veterans. These veterans served in Korea, Cambodia, Lebanon, Libya, Iraq, Syria and Afghanistan and the 9 million military personnel who served during the Vietnam era. Also, 3 million veterans who did a tour in Vietnam.

Today’s retirees are being forgotten, disregarded and ignored. The current mortgage rate is only at 4%. When America’s retirees purchased a home from 1979-1990, the mortgage rate averaged more than 10%. From 1981-82 the rate averaged more than 16%. In 1981, the mortgage rate hit a ridiculous and excessively high point of 18.63%.

Today’s retirees have worked 47 years, they paid off large mortgage interest rates and now that they are retired, the CD rate is 1%. I would label today’s retirees and America’s retired veterans as the “Screwed Generation.” I live in a 55+ community and nobody wants to invest in the too-risky stock market. Retired Americans have their money in a savings account or invested in CDs. A 1% increase in the interest rate will result in the majority of retirees having between $75 to $175 more per month. Therefore, an interest increase of 1% will enable retirees to purchase their necessary prescription medicines, make doctor’s appointments, purchase needed essentials and visit their grandchildren. The Fed needs to decide, retired Americans or the stock market and its lifelong privileged billionaires who have never worked, never gotten their hands dirty and have never served in the armed forces. The Fed needs to raise the interest rate.

Bob Johnson

Huntley