Forex Sky Eye APP News: Zero or negative interest rates have become a global phenomenon. Former U.S. Treasury Secretary Larry Summers said that as long as there is a recession, U.S. interest rates will also drop to zero or lower.

Forex Sky Eye APP News: Zero or negative interest rates have become a global phenomenon. Former U.S. Treasury Secretary Larry Summers said that as long as there is a recession, U.S. interest rates will also drop to zero or lower. Sanmers said that if the United States does not have a major change, it will be difficult for the Federal Reserve to maintain interest rates above zero. With just one recession, interest rates will drop to zero or lower. He predicts that the chance of a recession next year is less than 50%, but the chance of a recession will increase significantly in the next few years.

Sanmers is worried that the United States will follow in Japan and experience decades of economic stagnation like Japan. He said that stability policies must be considered. The global environment is very different. Entering a world of zero interest rates in black holes, institutions must consider investment strategies.

Since the beginning of this year, the Federal Reserve has cut interest rates twice, and the federal funds rate has reached 1.75~2%. The market estimates that the Federal Reserve will cut interest rates at least once before 2020. Federal Reserve Chairman Powell said at a meeting in September that he did not believe the United States would adopt negative interest rates. The Federal Reserve will also hold an interest rate meeting at the end of October.

Financial Times, MarketWatch and others reported in August that under the pressure of the trade war, the international economy has deteriorated, and economists are increasingly worried that the world may fall into the evil disease of "Japaneseization", addiction to low interest rates, and the economy has been sluggish for a long time.

Japaneseization refers to the battle that the country has fought for nearly 30 years against deflation and weak growth. Japan has introduced extraordinary monetary stimulus measures, but the results are not effective, resulting in a sharp increase in debt and a decline in bond yields. Economists are increasingly worried that Europe and the United States will follow in Japan, and Lisa Shalett, investment director at Morgan Stanley Wealth Management, said: "People will be addicted to low or negative interest rates, which is terrible, and Japan has not yet escaped...the global crisis."