The government is trying to shore up a system teetering on a massive financial storm. Purists can say what they want but no administration is going to allow the system to fail and watch the calamity that follows. Higher interest rates might shore up the dollar but if you kill the economy then what good is it? My company is making good money exporting our products and even in this era of inflation our sales are likely to increase 20% y/y. If my inflation rate is 5% then crudely stated I am still up a great deal.
I won’t deny that government interference in the market has caused many problems but collective self interest is killing us as well. One day when the economy does come crashing down and the tax revenues with it people will come to find that their Sugar Daddy is no more.
“Rock, meet hard place.”
Or as the Spanish put it, we are between the sword and the wall.