Tucked into the 265-page House Budget Committee report accompanying their fiscal 2016 budget proposal was a sharp, but poignant, criticism of the G Fund.
“Securities within the G Fund are not subject to risk of default. Payment of principal and interest is guaranteed by the U.S. government. Yet the interest rate paid is equivalent to a long-term bond. As a result, those who participate in the G Fund are rewarded with a long-term rate on what is essentially a short-term security,” the report said.
Even though the language was a mere suggestion, it had many worried.