Millennials have grown up with dire warnings that Social Security will be exhausted by the time it is their turn to use it. Retirement saving behavior is not the only driver causing economic torpor and lower rates. The lower interest rates that result from high and unequal saving might sound great — think cheaper mortgages — but they leave economies vulnerable to shocks. Fed officials think mass bond-buying and promises to keep rates low for longer can give them power to fight a slump. But the jury is out on whether such alternatives will add enough ammunition to make up for lost room on interest rates.

Source: International New York Times February 17, 2020 18:56 UTC