Last week, Munich Re announced strong investment returns but warned that low interest rates could impact results going forward. In an interesting interview with The Financial Times, Nikolaus von Bomhard, CEO of Munich Re, explains the challenges facing insurers due to easy monetary policies that have sent interest rates to record lows in many developed countries. Mr. von Bomhard expressed some support for a low rate policy intended to boost the economy but he sees broader implications, some of which are not widely discussed. Read this article for more details.
A very brief video clip of Federal Reserve Chairman Ben Bernanke announcing that the recession is over has been seen on nearly every nightly newscast this evening. What is more relevant are the comments Mr. Bernanke made prior to stating that the recession is nearly over and the implication of his statements on Federal Reserve policy in 2010. Read this article for a video of Mr. Bernanke and analysis of the implications of his views.
James Grant, publisher of Grant’s Interest Rate Observer, appeared on CNBC today and commented on Federal Reserve policy and his outlook for interest rates and inflation. I found the following quote to be particularly interesting. Interested readers should view the video below or, for those reading this via the RSS Feed, click on this link to view the video on CNBC’s site.