SHV - ECB's Business Analyst On The Euro Negative Rates And The Inverted Yield Curve
By Jeremy Schwartz, CFA
Last week on the "Behind the Markets" podcast, Professor Jeremy Siegel from The Wharton School at the University of Pennsylvania and I had the pleasure of speaking with Dr. Diego Rodriguez-Palenzuela, who heads the European Central Bank's (ECB) business analysis division.
Given the recent yield curve inversion, Rodriguez-Palenzuela is keeping a closer eye on the U.S. but believes that the natural or equilibrium rate of interest is low on a global scale and the U.S. is not the only country affected by low natural rates.
Although Europe has negative short-term rates,