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Isn’t this by design? When interest rates lower, institutions are forced to find yield elsewhere. Don’t central banks lower interest rates to make saving less
by vxxzy 7y ago
Isn’t this by design? When interest rates lower, institutions are forced to find yield elsewhere. Don’t central banks lower interest rates to make saving less attractive?
- smt88 7y agoPension funds != savings Pension funds are intended to be large pools of money invested wisely, ensuring that retirees from a certain employer can be paid what they were promised. Changing interest rates would affect how the fund managers invested the money (in theory). It's unlikely that pension fund managers can recession-proof their investments, partly because recessions by definition are harmful to almost everyone who is holding securities when they begin.