Make no mistake, if a negative interest policy is adopted globally, US pensions, largely dependent on debt, will blow up. That's only a matter of time. The Fed understands this reality. If they take interest rates negative, thus, abandoning domestic objectives, it's a clear sign that they're worried about an international contagion spreading from Europe.
Headline: Why the Fed's Interest Rate Plans May Get Turned Upside Down
This year was supposed to be when everything went back to normal. Instead, the economy could get a lot weirder.
After years of of near-zero interest rates, it appeared the Federal Reserve would able to guide its benchmark short-term interest rate close to 1% by year’s end. Sure, that’s low by historical standards, but rhetoric coming from the Fed and many analysts on Wall Street was that in 2016 the price of money would begin to rise back to levels that we were used to before the financial crisis.
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