Well known banking analyst Meredith Whitney was on Bloomberg to discus current monetary policy of US Federal Reserve and thinks that policy of keeping interest rates low to stimulate economy has been stretched far beyond the point where risks are outweighing the benefits
-- Duration of Federal Reserve current policy has been too long.
-- This Dangerous Fed Policy not helping banks
-- It has created difficult environment for banks to make money as interest rates have been so low
-- As banks are not making money on interest rates they are not lending much. This is also forcing banks to make more risky bets in -- For consumers, it is not helping as well, low interest rates are not getting anything to people who are saving money
-- Low rates are not doing anything to create jobs, low rates are not doing anything to increase spending and consumption
Here is the video:
http://bloom.bg/TDGMdy
-- Duration of Federal Reserve current policy has been too long.
-- This Dangerous Fed Policy not helping banks
-- It has created difficult environment for banks to make money as interest rates have been so low
-- As banks are not making money on interest rates they are not lending much. This is also forcing banks to make more risky bets in -- For consumers, it is not helping as well, low interest rates are not getting anything to people who are saving money
-- Low rates are not doing anything to create jobs, low rates are not doing anything to increase spending and consumption
Here is the video:
http://bloom.bg/TDGMdy
