Gary Cohn, a former chief economic adviser to former US President Donald Trump, said long periods of high interest rates were discouraging investors from taking risks and prompting them to put money into safer government bonds.

"Fiscal and monetary policies are directly affecting how money is used, and I think this is a more important topic about what money is available today," Cohn, who is now vice chairman of IBM, said on Tuesday.

According to Cohn, investors can get 5% through 6-month Treasury bills.TrendingblockchaingamesThey are willing to take more risks, such as investing in startups, before they have a .3% or 5.4% return on tax breaks. Investors would have put the money now invested in Treasuries into riskier assets in the financial markets, he said. Before Trump served as director of the National Economic Council, Cohn was president and chief operating officer of Goldman Sachs.

"We have changed.TrendingblockchaingamesThe way people think about money holding, investing and recycling, "Cohn said. "as a result of fiscal and monetary policy, some changes have taken place in the natural rhythm of capital moving in and out of risky assets."