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‘Addiction’ to cheap money will do ‘tremendous damage’ to the global economy

“U.S. President Donald Trump has consistently called for low interest rates, tweeting in September that the Fed should cut interest rates to zero or even set negative interest rates” writes Weizhen Tan for cnbc.com. Speaking at the Forbes Global CEO Conference in Singapore on Tuesday, Hedrick-Wong said: “I’m a firm believer that zero interest rate, or negative interest rates (is) actually doing tremendous damage to the economy over the long term.Low interest rates hurt lenders’ profits as they narrow the margin that banks can earn.Still, analysts are expecting the Federal Reserve to continue trimming interest rates amid fears of slowing global growth and uncertainty over Brexit and trade tensions.”We’re also talking about negative interest rates in the United States too.
 
Source: cnbc.com



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