The European Central Bank has taken extraordinary steps to resuscitate the economy, but it’s gone too far, say two power players.
In June of 2014, Europe’s Central Bank slashed interest rates into negative territory, a move that was called unconventional and experimental. The central bank pushed rates even deeper into the negative zone this year. That strategy is backfiring, warns Paul Achleitner, chairman of Deutsche Bank.
“People look at that and see negative interest rates as a warning signal that the future is even less safe than it is today,” said Achleitner at an American Council on Germany event in New York Wednesday evening.
Renowned American investor Jeffrey Gundlach called negative interest rates in Europe and Japan “the great plague of the 21st Century” in a webcast this week.
http://money.cnn.com/2016/06/16/news/economy/negative-interest-rates-europe/