A Positive Outlook for U.S. Interest Rates

Instead of the threat of deflation from weak growth and falling prices, the U.S. is facing the opposite: accelerating inflation.

For virtually my entire academic career, I have taught students that interest rates could never be negative. Who, I asked, would pay $100 for a bond that pays $99 at some future date—the effect of negative rates—when you could put $100 in your pocket and guarantee that you’d have the full amount?

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Jeremy J. Siegel
Contributing Columnist, Kiplinger's Personal Finance
Siegel is a professor at the University of Pennsylvania's Wharton School and the author of "Stocks For The Long Run" and "The Future For Investors."