TTT - Post?Pandemic Interest Rates: Lower For Longer
U.S. Treasury yields plunged to new all-time lows after the onset of the coronavirus pandemic, reflecting a flight toward safety by investors, the prospect of a very deep recession, and large-scale purchases of Treasuries by the Federal Reserve. How long-lasting will this environment of super-low interest rates be?
Some observers argue that once the pandemic passes, record-wide fiscal deficits, concerns about debt sustainability, and higher inflation will push nominal and real interest rates back up to, and potentially even above, pre-pandemic levels. Others believe that a combination of a larger private sector saving glut and