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?

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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."