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US interest rates: Merle Hazard tries to cheer up Fed watchers US interest rates: Merle Hazard tries to cheer up Fed watchers
(about 4 hours later)
Will the US Federal Reserve raise interest rates this week? Not a chance, say economists.Will the US Federal Reserve raise interest rates this week? Not a chance, say economists.
The bigger question is when - perhaps if - the central bank will ever get borrowing costs back to more normal levels.The bigger question is when - perhaps if - the central bank will ever get borrowing costs back to more normal levels.
December brought the first US rate rise in almost a decade but since then Fed policymakers, led by chair Janet Yellen, have been sitting on their hands. The Fed’s main interest rate is still very close to zero, with a range of 0.25-0.5%.December brought the first US rate rise in almost a decade but since then Fed policymakers, led by chair Janet Yellen, have been sitting on their hands. The Fed’s main interest rate is still very close to zero, with a range of 0.25-0.5%.
If you find waiting for the next rise like watching paint dry, fear not. Merle Hazard, Nashville’s most financially literate music star, has come to the rescue and summed up the frustrations of Fed watchers and savers alike with his latest bluegrass ditty: How Long (Will Interest Rates Stay Low)?If you find waiting for the next rise like watching paint dry, fear not. Merle Hazard, Nashville’s most financially literate music star, has come to the rescue and summed up the frustrations of Fed watchers and savers alike with his latest bluegrass ditty: How Long (Will Interest Rates Stay Low)?
Merle - also known as Nashville-based money manager Jon Shayne – shot to internet fame during the credit crunch with musical parodies such as Bailout and In the Hamptons, a parody of the Elvis Presley hit In the Ghetto about the fate of a mortgage bond trader. Merle – also known as Nashville-based money manager Jon Shayne – shot to internet fame during the credit crunch with musical parodies such as Bailout and In the Hamptons, a parody of the Elvis Presley hit In the Ghetto about the fate of a mortgage bond trader.
This latest release from the man in beige features Grammy-award winning banjoist Alison Brown, who was a contemporary of Shayne’s at Harvard and gave up investment banking for a music career.This latest release from the man in beige features Grammy-award winning banjoist Alison Brown, who was a contemporary of Shayne’s at Harvard and gave up investment banking for a music career.
Here’s a flavour of the song, which is sure to resonate with pensioners and German finance ministers frustrated with low eurozone interest rates.Here’s a flavour of the song, which is sure to resonate with pensioners and German finance ministers frustrated with low eurozone interest rates.
How long will interest rates stay low?How long will interest rates stay low?
That’s the question, the whole world wants to knowThat’s the question, the whole world wants to know
How long will borrowing be free?How long will borrowing be free?
How long will we be subsidised by savers and retirees?How long will we be subsidised by savers and retirees?
But there are also words of support for central bankers like ECB chief Mario Draghi, who has been rebuffing German suggestions that rock-bottom rates are the root, not the symptom of economic woes. But there are also words of support for central bankers like the ECB chief, Mario Draghi, who has been rebuffing German suggestions that rock-bottom rates are the root, not the symptom, of economic woes.
As Merle Hazard sings: As Hazard sings:
Some say low rates are symptomatic, rather than the cureSome say low rates are symptomatic, rather than the cure
I have a hunch they’re right. I can’t say I am sure.I have a hunch they’re right. I can’t say I am sure.
But recovery has been long and slow, the crisis wounds are deepBut recovery has been long and slow, the crisis wounds are deep
So until we see inflation, money’s likely to be cheapSo until we see inflation, money’s likely to be cheap
Hazard, whose name is based on that of recently departed country singer Merle Haggard, has also released H-E-D-G-E, a parody of the Tammy Wynette hit D-I-V-O-R-C-E and Greek Debt Song. For those and more, go to Merle’s site. After all, the latest bet is a US hike in June, so there is plenty more time to fill. Hazard, whose name is based on that of the recently departed country singer Merle Haggard, has also released H-E-D-G-E, a parody of the Tammy Wynette hit D-I-V-O-R-C-E and the Greek Debt Song. For those and more, go to Merle’s site. After all, the latest bet is a US hike in June, so there is plenty more time to fill.