Sun Life CIO: US Fed "Powerless" To Stimulate Economy

Date : 10/25/2011 @ 10:05AM
Source : Dow Jones News
Stock : Sun Life Financial Inc. (SLF)
Quote : 39.14  0.0 (0.00%) @ 2:05AM

Sun Life CIO: US Fed "Powerless" To Stimulate Economy

Sun Life (NYSE:SLF)
Historical Stock Chart

5 Years : From Sep 2012 to Sep 2017

Click Here for more Sun Life Charts.

A top Sun Life Financial Inc. (SLF) executive says the U.S. Federal Reserve's main tool to stimulate economic growth is no longer effective.

The U.S. central bank's ability to spur mortgage refinancing through low interest rates isn't possible because housing prices are too low, said Stephen Peacher, Sun Life's chief investment officer.

The Fed "is powerless to stimulate the economy," he said at the Toronto Forum for Global Cities conference in Toronto.

The Fed "can't do much about today's economy," he said.

The average mortgage rate fell from 11% in 1983 to 5%, he said.

"It doesn't work today because home prices are too low," he said.

Former Fed chief Paul Volcker is "singularly responsible" for the 2008 financial crisis because "he broke the back of inflation" in the 1980s, leading to steadily declining interest rates, and rising asset prices that in turn led to excessive leverage in the financial system, Peacher said.

"No good deed goes unpunished," Peacher said.

-By Caroline Van Hasselt; Dow Jones Newswires; 416-306-2023;

Latest SLF Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....

No posts yet, be the first! No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts

Your Recent History
Gulf Keyst..
FTSE 100
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.