Au contraire, nom frere, inflation is not ‘low’, those numbers are cooked.
The rate increases were in very small increments from a historically low base.
In a supposedly booming economy with historically low unemployment, rates should be significantly higher. And our economy should be able to handle it.
Also, manipulation of rates this low for this long causes severe dislocations in the real economy.
If the players are so ultra confident of where rates ‘should’ be, why are they not advocating the free market be the final arbiter to determine that?
Centralized planning never worked and never will. It only plants the seeds for major problems down the road.
The longer term interest rates are set by the free market and they are low. In fact we have a negative yield curve, which is not normal. Since the longer term rates have the inflation rates baked into them and short term rates should logically be lower than long, that is proof that the short term rates are too high.
I guess somehow the free market is missing how the inflation numbers are cooked.
I believe every recession going back decades was preceded by a negative yield curve, proving that the Fed is always slow to perceive a slowing economy, while the free markets know what's happening.