Comment by sgerenser
2 years ago
The Fed keeping rates too low for too long caused the asset inflation. That’s in the past though, what is the Fed doing now to cause asset inflation?
2 years ago
The Fed keeping rates too low for too long caused the asset inflation. That’s in the past though, what is the Fed doing now to cause asset inflation?
Seems like they're trying to balance out the other end of the equation by punishing labor through very high interest rates. My personal pet theory is that the fed wanted to raise rates enough so that the static interest rates on student loan debt didn't look so absurd when student loan payments came back online. Otherwise people would be demanding student loan debt relief. That ~7% doesn't seem so silly now, it's about inline with mortgage rates. But when mortgages were approaching 2%, that same 7% looked usurious.