For most consumers, rising interest rates are an ill wind: they inflate the cost of borrowing to buy or build. But, to bend a proverb, the rise may soon blow some good to one group: savers.
Members of TIME'S Board of Economists predict that the Federal Reserve soon will ease its Regulation Q and allow commercial banks to pay higher interest on passbook savings, which can be withdrawn at any time. Regulation Q now sets a ceiling of 5% on them. If that is raised, the Federal Home Loan Bank Board also would have to permit savings and loans to pay more...
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