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NEW YORK (TheStreet) -- The Federal Reservewon't be raising interest rates this year or for "the foreseeable future," said Dr. Srinivas Thiruvadanthai, director of research for the Jerome Levy Forecasting Center. 

Global economies, especially the emerging markets, would not be able to withstand a U.S. rate hike, he explained. Emerging markets are the most dependent on U.S. growth and need to improve their trade balances with the U.S.

U.S. Treasury bonds continue to trade with a higher yield than many of the European countries' bonds, such as Spain and Germany. In fact, on several of the shorter-dated European bonds, rates are actually negative at a time when European stocks are rising.  

He said Europe is benefiting more from low oil prices and a weak euro than the European Central Bank's quantitative easing policy.

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Declining oil prices and a falling euro are helping the economy right now. Investors in Europe are scrambling to find a safe asset to protect their money, even if that means paying a premium to do so. 

Finding a new business model will not be "easy to do," he said. It will be a long-term transition. While emerging markets are very dependent on exports, many also benefit from low interest rates. 

-- Written by Bret Kenwell 

Follow @BretKenwell