Ben Bernanke: Why are interest rates so low?
Ever wondered how the Chairman of the FOMC really thinks about interest rates and inflation? Well in the US there is a bit of a buzz about Ben Bernanke (former FOMC Chairman) and his first blog post tackling this exact subject. Bernanke says that lower rates are not a short term aberration but part of a long term trend. He also says ultimately people should keep in mind that the underlying health of an economy will have the biggest impact on where rates are set. "The state of the economy, not the Fed, is the ultimate determinant of the sustainable level of real returns. This helps explain why real interest rates are low throughout the industrialized world, not just in the United States." You can access the full blog post here: (VIEW LINK)
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