What "They" Should Do Next

June 3, 2016
Bloomberg Editorial Board: What the Fed Should Do Next

It needs to avoid the suspicion that it's dithering and that super-low interest rates will be available indefinitely.

Who's suspicious?

Just because I write an Illusion of Prosperity blog, am a long-term holder of long-term US bonds, Japan's short-term interest rates have been below 1% for more than 20 years, our short-term interest rates have been below 1% for more than 7 years, a record $10 trillion in global debt has negative yields, our banking system must endure negative interest rate stress tests in order to boost dividends or buy back shares, and Janet Yellen won't rule out negative interest rates as a monetary policy tool, it does not necessarily mean that I am suspicious.

In fact, I could believe that the future's so bright, I gotta wear shades!