I do not agree with our honorable President. Interest rates of 2-3% are really very low, and anything lower is dangerous.
Rates aren’t low compared to the yield curve which is the correct measure. Rates are too high.
So why during Obama years was the rate at zero?
We need a stimulus in stand by for the next recession. If interest rates remain perpetually low, there will be no ability to drop rates and goose a faltering economy.
That said, if you balance the growth that we seem to be giving up now against the future benefit, we’re getting to a point where growth foregone is greater than the benefit we might get later.
My 401k is at plus 17.5% ytd. The market is hotter than a firecracker and has got me a wee bit nervous. Never take market advice from me whatever you do.
You are 100% correct. It’s not the Fed’s job to buy billions of dollars of U.S. government debt to keep interest rates artificially low just because Congress and the White House have no fiscal restraint.