Blogs
Reuters | New U.S. stress test needed: higher interest rates
“Don’t fight the Fed,” the saying goes. The U.S. Federal Reserve is promising ultra-low interest rates into 2015. Yet the buildup of low-yielding debt on financial firms’ balance sheets means they may suffer badly if rates jump. The central bank aside, prudent bosses – and their watchdogs – need to ensure they are avoiding fights with history, too.
