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Because we will have a recession sometime in the next couple years, and if the Fed keeps interest rates at 0, it will have no ammunition when the time comes.
by seansmccullough 11y ago
Because we will have a recession sometime in the next couple years, and if the Fed keeps interest rates at 0, it will have no ammunition when the time comes.
- TheCowboy 11y agoRaising the rates prematurely, you risk accidentally triggering a recession or weakening the economy, then you're forced to raise rates to prevent a recession caused from prematurely raising rates. Interest rates aren't something you can slowly raise without effect.
- seansmccullough 11y agoThe economy is the strongest it's been in 5 years, and you can't keep rates low forever.