Two articles have been making a lot of noise in the Federal Retirement circles and they both have to do with the G Fund.
A summary of what is being discussed is that the House Budget Committee is looking at dropping the rate of return received from the G Fund because the interest rate paid is equivalent to a long-term bond and the House Budget Committee is basically saying the G Fund is essentially a short-term security.
Fed Smith has written a great article on what would happen if TSP interest rates became negative like what’s happened in Germany. It will be interesting to see how any decision by the FED will affect the TSP and the G Fund.
– Cooper Mitchell