3 ms·
Yes, sorry I meant interest rates. Maybe a poor choice of words. I wrote another article years ago positing that once you hit zero on interest rates, it's looki
by StuntPope 8y ago
Yes, sorry I meant interest rates. Maybe a poor choice of words. I wrote another article years ago positing that once you hit zero on interest rates, it's looking like you may never be able to normalize again (see Japan).
We're at 2.4% (In the US) but that's still too low and the Fed is trapped. They can't go higher, they've paused and depending on what happens over the next while, they may very well have to cut.
So I use the phrase trapped at the zero bound because once you actually touch that bound I think you get stuck there.
That old post was:
https://www.zerohedge.com/news/2016-01-14/trapped-inside-zero-bound-crossing-economic-event-horizon https://www.zerohedge.com/news/2016-01-14/trapped-inside-zer...