The Curse of Low Interest Rates
(Fortune) — What’s good for America isn’t necessarily good for all Americans. The case in point: low interest rates.
The government has cut short-term rates (which the Federal Reserve controls) to essentially zero, and has spent more than $1.5 trillion buying assets and mortgages to hold down long-term rates (which are controlled by the financial markets). This is good for the U.S. economy as a whole, and especially good for borrowers. But these artificially low rates are terrible for savers, especially for retirees who want to convert their lifetime savings into lifetime income.
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