Top Fed official ‘very concerned’ about U.S. economy

Top Fed official ‘very concerned’ about U.S. economy

Low interest rates remain stagnant, and Vice Chair of the Federal Reserve Stanley Fischer indicates that may have detrimental, long term effects on the U.S. economy. He stated on October 17 at the New York Economic Club, “To the extent that low long-term interest rates tell us that the outlook for economic growth is poor, and all us should be very concerned.” He points to the fact that rates are low because innovation and investment are stunted and productivity is declining due to the baby boomer population growing in age. The looming possibility of a rate hike in December has been highly publicized, and the probability of that happening is still uncertain. Raising interest rates would mean that our economy is doing well, which Fisher highlights the fact that it certainly is not.

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