You Decide: What’s the meaning of super-low interest rates?
Many of us love to hear about new records being set. I particularly
like major league baseball, so when a player establishes a new
hitting, pitching or fielding record, I get excited.
Recently, an economic record was set. The interest rate on 10-year
U.S. Treasury notes fell to under 1.5 percent, the lowest ever. U.S.
Treasury notes are simply investments with the federal government that
help fund the national debt. The low interest rate is telling us the
federal government doesn’t have to pay much today to attract
The 10-year U.S. Treasury note rate is also the benchmark for other
long-term interest rates (such as for mortgage loans), so these rates
are at or close to all-time lows. Interest rates on shorter-term
investments are similarly low; indeed, some are almost zero.
So what do these ...