If credit markets were working perfectly, then the Fed intervention to push real yields lower than normal was unwarranted and the low real yields were indeed punishing savers. At the same time, it is difficult to argue that credit markets have been working perfectly over the past five years.
These rates are revised somewhat upward from the projections made three months ago, being above the potential growth rate, which is estimated to be in the range of 0.5-1.0 percent.