There are two major levers to recover from a down turn - monetary policy and fiscal policy. In the last downturn, 2008, both were heavily pulled - most people f

There are two major levers to recover from a down turn - monetary policy and fiscal policy. In the last downturn, 2008, both were heavily pulled - most people forget this but monetary policy was (rightly in hindsight) a near instant drop and fiscal policy was all the hundred billion programs like TARP. Raising rates in good times means more of a lever to pull in bad times. Letting the credit bubble continue to inflate, while keeping rates arbitrarily low to let a bull market run for benefiting the wealthiest, makes little sense historically.