Markets betting on near-zero interest rates for another decade

The Fed is just a couple of blocks from me as I post this.
The Fed is just a couple of blocks from me as I post this. I should see if Yellen can join me for coffee.

Hey Japan’s had 2 lost decades. We need to get on board the stagnation train!

Frankly, we’ll be lucky if we don’t see negative rates.

(From Yahoo)

Japan’s main interest rate won’t reach 0.5 percent for at least 30 years, they suggest, and even U.S. and UK rates are set to remain low for years. It will be six years before U.S. rates return to 1 percent, and a decade until UK rates reach that level.

“Although interest rates are low, they’re not accommodative,” said Harvinder Sian, global rates strategist at Citi in London. “The era of zero rates will be with us for years and years, it wouldn’t surprise me if we’re looking at another five to 10 years.”

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