Interest Rates: A Growth Story
Interest rates in the US are at levels never seen before. Companies gorge on debt as their cost of debt capital declines. Meanwhile, income-focused investors and savers yearn for the security of higher levels. Monetary policy certainly abetted the achievement of these levels. The reality is that another factor is complicit in the conspiracy to lower interest rates: growth. Low rates could endure fora decade or more without an effective policy response.