Posted by fung9815 > 2017-10-04 17:48 | Report Abuse

If the interest rate in the US was 2.3% 20 years ago, they might have seen 20% inflation back then; today they are having 2.3% interest rate but inflation is only 1.9%.

Not saying that inflation will not eventually go up, but we are living in a tech-driven low inflation era. Unless inflation rate shoots up substantially, we are going to continue seeing low interest rates (Fed's long-term target is 3%).

Tech-driven low inflation is a huge topic that is too big to summarise here. Even Buffett himself is surprised with the low inflation.