Global Central Bankers Warn Era of Cheap Money May Not Return

Central bankers meeting in Bangkok warned that cheap money may not return, creating a significant shift for housing and household wealth. Realtor.com reported that costlier mortgages, slower home price gains, and stretched equity markets are forcing households to reconsider where they invest their capital. [1][2]

European Central Bank policymaker Martins Kazaks told Reuters that there is a global fight for money. He pointed to the massive capital requirements of artificial intelligence as a primary driver pushing borrowing costs higher. [1]

Federal Reserve Chair Kevin Warsh described the ongoing investment surge as a shock and warned that the economic transition could be very bumpy. At the same time, the 10 year Treasury yield recently rose above 5 percent. BNY Chief Executive Officer Robin Vince called the move a normalization following years of unusually low interest rates. [1]