Greenspan Says Negative Rates `Warp' Investment Behavior
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Greenspan: Negative Rates Warp Investment Behavior
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Former Federal Reserve Chairman Alan Greenspan said negative interest rates, if pursued for an extended period of time, will eventually distort saving and investment.
“I wouldn’t say dangerous, but it is clearly not productive,” Greenspan, who left the Fed in 2006 after almost 20 years at its helm, said Monday in an interview with Bloomberg Radio and Television. “The big argument about excessively low interest rates for a very long period of time is that it warps the investment pattern on real investments.”