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Sunday, February 8, 2015

A Somewhat Contrarian View on Interest Rates. CEO of Goldman Sachs, Lloyd Blankfein



 Belvedere M. (2015, January 7). Squawk Box. New York, New York. CNBC


 Summary:

Lloyd Blankfein: "I would take a lot of risk on the inflation side."  , "Sustaining it and trying to recapture the momentum."

The popular opinion is rates should go up. However, I think the Goldman Sach's CEO has a great point about momentum. The Fed has few monetary policy bullets left, and manufacturing a stall in the economy because of interest rate manipulation could be exacerbated by the Fed lacking options to boost the economy.

I believe this perspective on momentum placates a slower rise of interest  rates and reduces the urgency to buy homes because the rates might not move quickly.

I like this perspective as its the opposite of a lot the conventional wisdom I hear.

Here are Blankfein's opinion on how Oil impacts other parts of the economy



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