A very small minority understands that the Fed's domestic policy tools represent only a minor influence in global capital market flows that drive trends. The US and global economy is contracting already, but few can cut through the BS to recognize it. The contraction will become more obvious in 2017. While interest rates may remain low in the initial stages of the crisis, they will be to rise when they realize the Fed (emperor), an organization that yields to the incompetence of central planning, is wearing no clothes behind the curtain.
Headline: Fed's Bullard: Low rates will likely be the norm for the next two to three years
Low interest rates will likely be the norm during the next two to three years, James Bullard, president of the Federal Reserve Bank of St. Louis and a voting member of the Federal Open Market Committee, said in prepared remarks on Monday.
The U.S. is in a low-productivity growth regime, which is pressuring real safe rates of return, he said.
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