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More Q&A: - Q: Worried that low rates leading...>

FED
FED: More Q&A:
- Q: Worried that low rates leading to debt bubble?
A: Household balance sheets in strong shape... Business sector not materially
highly leveraged, but some companies are highly leveraged. That's something that
happens in a long cycle. Something we're monitoring; amplifier of economic
downturn, wouldn't in itself create a shock.
- Q: On yield curve.
A: There's no one thing that is dispositive. We follow yield curve carefully,
but on all data, still have positive outlook. Rates retraced drop in short
period of time. What really matters for fin conditions, what matters are
conditions that are sustained for long period of time. Long-end yields could be
low due to low yield premiums. You need to ask yourself a lot of questions if
the yield curve is inverted - why is it inverted.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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