A couple of days back, the FED decided to delay the increasing of the interest rates once more, which again brought a momentary respite for markets. Well, who doesn’t like near zero interest rates? However, have we considered the implications of such a long period of low interest rates? The spenders are the ones benefitting from such a policy compared to the savers.
Hence, I thought I share some of my thoughts regarding this issue. Feel free to correct me if you disagree with any points I raised, afterall, I am no Economist despite having majored in Economics.
Point 1: Stop supporting markets
I get the feeling that the FED seems to be accommodating investors than the other way around. The FED’s mandate is to ‘promote sustainable growth, high levels of employment, stability of prices to help preserve the purchasing power of the dollar and moderate long-term ...
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