Why Calstrs CIO Wants the Fed to Raise Rates Faster

The video discusses the concept of 'normal' interest rates, highlighting a shift from 4% to 3% as a standard. It explores the impact of low interest rates on savings, particularly for millennials, and the challenges of a flat yield curve. The demand for long-term duration is emphasized, with insights from Larry Fink on global investment trends.

What was the original 'normal' interest rate according to the Federal Reserve before it was lowered?

• 4%

• 2%

• 3%

• 5%

Why does the speaker believe a 3% interest rate is important?

• It reduces inflation.

• It encourages more borrowing.

• It increases government revenue.

• It provides value to savings and fixed income.

What is the speaker's view on the current savings habits of millennials?

• They are not saving enough due to low interest rates.

• They are focused on real estate.

• They are saving too much.

• They prefer investing in stocks.

What does the speaker hope to achieve with a positively sloped yield curve?

• Encourage savings and investment.

• Make borrowing cheaper.

• Encourage more government spending.

• Increase inflation.

Why is there a global demand for long-term U.S. bonds according to the speaker?

• They offer higher returns than short-term bonds.

• They have lower interest rates.

• They are easier to sell.

• They are safer than bonds from the UK or Japan.