Brexit may help retain near zero interest rates
This may be one of the only good things to come out of Brexit.
Click here for reuse options!Britain’s shock vote to leave the European Union may tie the U.S. Federal Reserve to near zero interest rates for far longer than expected, according to new research indicating the U.S. central bank is now tightly bound to international economic conditions.
Over the past 18 months the Fed has blinked more than once, and refrained from raising interest rates when global market volatility has darkened the economic outlook, but the Fed has still maintained that U.S. monetary policy could ultimately “diverge” toward higher rates even in a weakened world economy.
That idea may now have suffered its final blow.
Copyright 2016 Liberaland
3 responses to Brexit may help retain near zero interest rates
Leave a Reply
You must be logged in to post a comment.
mea_mark June 25th, 2016 at 09:07
I doubt the Brexit will really hurt the world economy that much. There really is a lot of fear mongering going on as people try and push their political agendas during a manufactured fake crises. Non-violent peaceful change usually stimulates the economy as people have to create new ways of doing things. New jobs open up, people move around, new facilities get built, old facilities get remodeled, all sorts of things start happening that can boost the economy. Doom and Gloom is just a bunch of bs being pushed by people that want to push their own political agenda while people aren’t thinking clearly and are scared. If bad things happen, it will be because too many stupid people make a bunch of bad decisions out of unnecessary fear, propagated by politicians with self serving agendas. Look for the opportunities in the new conditions and make the best of it.
granpa.usthai June 25th, 2016 at 09:28
Britain’s economic input may be more than you think, or expect, in today’s global market. Having once be the MAJOR colonial power (the sun never set on the British Empire) has left long standing businesses with economic ties to Mother Britain. Especially in the USA and the remaining Commonwealth. There will be major economic repercussions in the economies of US, Canada, Australia, New Zealand, the EU, China, the mid-east, South Africa and a host of other nations worldwide. Hopefully it will be for the best, but as you have indicated yourself FEAR of the UNKNOWN causes uncertainty in Investments. I’ve got full confidence in the British people (stiff upper lip ole chap, Monty Python humor and all) being able to overcome any obstacle – other than maybe their own selves.
Here’s to hoping they are successful – and our common investments will be fruitful, after all, if it doesn’t work out, they can re-apply for EU membership – even if their economy goes belly up.
mea_mark June 25th, 2016 at 10:02
Just because they are leaving doesn’t mean they won’t have trade treaties in place when they leave. It’s stupid to think that they are going to isolate themselves, they didn’t vote for that and they don’t want that. They want free of the shackles of austerity, failed neoliberalism and more controls on the immigrants coming into their country while they are rebuilding their economy. The oligarchy in Brussels and in the EU have been damaging Europe’s economy for 7 years with austerity. World powers have been destabilizing the middle-east with regime changes that is causing chaos with a diaspora. They want a break from the chaos caused by other countries and the oligarchy. A break from the stupidity of failed government policies should see them do well fairly quickly, if they don’t cave into too much fear mongering.