'Addiction' to cheap money will do 'tremendous damage' to the global economy

"The addiction to cheap money … that's the problem, not the solution," said Yuwa Hedrick-Wong, a visiting scholar at the Lee Kuan Yew School of Public Policy, at the Forbes Global CEO Conference in Singapore on Tuesday.

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.People walking along Wall Street in the Financial District of Manhattan on September 03, 2019 in New York City.

The trend of zero interest rates is "perverse" and can "poison" the business environment, said Yuwa Hedrick-Wong, a visiting scholar at the Lee Kuan Yew School of Public Policy. Low interest rates hurt lenders' profits as they narrow the margin that banks can earn. In a negative interest rate environment, lowering rates deeper into negative territory essentially means that lenders are paying more to the central bank to keep their excess funds overnight.visiting scholar at the Lee Kuan Yew School of Public Policy

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 actually doing tremendous damage to the economy over the long term. To begin with, zero interest rates poison the business corporate environment."

When? I have been reading this for 7 fucking years and these crooks keep increasing the national debt to keep the scam going and Congress kisses their ass.

The trouble with Capitalism is sooner or later you run out of Working People's money. What other options do central banks have since Capitalism failed miserably on a global scale?

Here you are talking of cheap money and there RaGa is talking of free money and so also the great new and famous economist too was talking free money

The Fed has priced out millions of people out of owner homes or other assets. They made the risk reward ratio not worth it. We need new textbooks to cover the upside economics the Fed has created. federalreserve NewYorkFed

GREED IS EVIL!

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