Pimco Strategist on Trump and the Global Savings Glut

A study conducted by economists at the Bank of England found that the vast majority of the 450-basis point decline in global interest rates since the 1980s was due to a decreased desire in saving and investing rather than lower potential economic growth. This according to a Bloomberg article by Pimco managing director Joachim Fels, who shares his thoughts on the potential impact of the Trump administration in this regard. Fels argues that “quite a few aspects of President-elect Trump’s potential policies might actually work toward lowering, not increasing, that natural or equilibrium interest rate rather than increasing it.” He […]