Federal Reserve

Why U.S. gov’t cannot afford ‘normal rates’

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Through the prism of The Good, the Bad and the Ugly on Wall Street, here are three top items for investors on Wednesday.

The Good

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Forever low rates: Good & Bad

Closely followed hedge fund manager Kyle Bass told CNBC on Wednesday that "normal" Fed interest rates probably won't be at precrisis levels for a long time. The founder of Hayman Capital said the federal government can't afford it. "With every 100 basis points [in rate hikes], it costs us fiscally about $150 billion in interest."

Read MoreRich and poor worried about income gap

The Bad

Critics of near-zero rates so long after the 2008 crisis say Fed policy sends a negative message that it believes the economy won't be recovering enough anytime soon.

Read MoreNew home sales blowthe roof off with 18% surge

The Ugly

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The war of words over Internet privacy took a new turn when Google Executive Chairman Eric Schmidt told CNBC that Apple CEO Tim Cook's veiled criticism of the search giant's polices are unfounded.