Blankfein, a billionaire who served as Goldman’s CEO from 2006 to 2018, said Thursday on CNBC’s “Squawk Box” that low interest rates were essentially creating free money for big institutional investors. After keeping rates low for years after the 2008 financial crisis, the Federal Reserve said last month that it would maintain a zero-rate policy to help the economy recover from the coronavirus pandemic.
“Money is close to a free commodity,” Blankfein said. “And when something is free, you tend not to husband it, you tend to overuse it like it’s a free good.”
Blankfein was responding to a…