3 ms·
Raising rates it a good thing: 1. It allows the Fed room to maneuver during the next recession (https://en.wikipedia.org/wiki/Zero_lower_bound https://en.wikip
by seansmccullough 11y ago
Raising rates it a good thing:
1. It allows the Fed room to maneuver during the next recession (https://en.wikipedia.org/wiki/Zero_lower_bound https://en.wikipedia.org/wiki/Zero_lower_bound)
2. It will all investors to normalize their portfolios (http://blogs.wsj.com/moneybeat/2015/09/11/what-to-ask-before-you-reach-for-yield/ http://blogs.wsj.com/moneybeat/2015/09/11/what-to-ask-before...)
3. Savings accounts and fixed income will actually yield interest.
The US economy is actually in pretty good shape:
- Job creation has been solid (http://www.bls.gov/news.release/pdf/empsit.pdf http://www.bls.gov/news.release/pdf/empsit.pdf)
- Unemployment has been declining for 5 years (https://research.stlouisfed.org/fred2/series/U6RATE https://research.stlouisfed.org/fred2/series/U6RATE <- U6 rate, includes under-employed and those who quit looking for work)
- GDP is 20% higher than before the recession (https://research.stlouisfed.org/fred2/series/GDP https://research.stlouisfed.org/fred2/series/GDP https://research.stlouisfed.org/fred2/series/A191RL1Q225SBEA https://research.stlouisfed.org/fred2/series/A191RL1Q225SBEA)
- Average pay is increasing (https://research.stlouisfed.org/fred2/series/CES0500000003 https://research.stlouisfed.org/fred2/series/CES0500000003 all workers, https://research.stlouisfed.org/fred2/series/AHETPI https://research.stlouisfed.org/fred2/series/AHETPI not including supervisors)