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Rates were near zero for close to a decade. Fed needs to raise rates in order to have room to respond to a crisis, otherwise we won't have many monetary tools t
by notfromhere 8y ago
Rates were near zero for close to a decade. Fed needs to raise rates in order to have room to respond to a crisis, otherwise we won't have many monetary tools to use when another 2008 comes around.
Fact that the economy is starting to sputter with rates around 2-3% signifies some serious problems that we can't use zero interest rates to paper over forever.
- BoiledCabbage 8y agoNot to mention putting money in the hands of the middle class also is a way out. Unfortunately the govt likely won't have that option since it just strapped itself with 1 Trillion in debt giving money to people who mainly purchase investable assets. Meaning having the ability to cut rates is even more important.