Relax! Low Rates Don't Spell Doom Says Payden & Rygel Economist

Low interest rates do not signify weak economic prospects and are not a sign of global risk aversion, said Jeff Cleveland, Chief Economist at Payden & Rygel. Cleveland said a scarcity of high quality bonds, low central bank policy rates and low inflation explain low interest rates instead. He added that investors should focus on non-farm payroll employment data rather than GDP and reiterates that the U.S. economy is healthy. Finally, Cleveland said the European economy is turning the corner and it is coincident with - if not caused by - the massive quantitative easing program that commenced earlier this year.