Are the Days of Ultra Low Rates Numbered?
Federal Reserve Vice Chairman Stanley Fischer said both monetary and fiscal policy steps may be needed to fend off a protracted period of sub-par economic growth. “Ultra-low interest rates are not necessarily here to stay, especially if the right policies are put in place to address at least some of their root causes,” Fischer said in the text of a speech he delivered Wednesday in New York. In more than seven years since the Great Recession, Fed officials have raised interest rates only once, in December 2015, amid persistently low inflation and slow economic activity around the world. Economists in and outside the Fed have increasingly blamed the sluggishness on longer-run trends beyond the control of central banks. Canadian Imperial Bank of Commerce Head of G10 FX Strategy Jeremy Stretch discusses the outlook for the Fed and the ECB with Bloomberg's Anna Edwards and Manus Cranny on "Countdown."