36 • MARTIN H. RUBY
The New Norm? Most safe alternatives to the stock market rely on interest rates. And low interest rates are here to stay . . . at least in the near term. Interest rates have been falling steadily since the mid-1980s and are currently at historic lows. There are some clear reasons why this trend is likely to continue. In a speech to the International Monetary Fund, then-Federal Reserve Chairman Janet Yellen commented, “I do not presently see a need for monetary policy to deviate from a primary focus on attaining price stability and maximum employment.” 9 Granted, that’s a lot of Washington-speak. Translated to the English you and I speak every day, our government is saying in- terests rates should stay low because we want companies to be able to afford to hire workers and we want workers to be able to afford to buy bread, milk, cars, and clothes at prices that aren’t pumped up by inflation. And we’ve seen that to be true.
9 Janet L. Yellen. Chair of the Board of Governors of the Federal Reserve System. July 2, 2014. “Monetary Policy and Financial Stability.” Speech given at the 2014 Michel Camdessus Central Banking Lecture, International Monetary Fund, Washington, D.C. http: // www.federalreserve.gov / newsevents / speech / yellen20140702a.htm.
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