FED can NOT raise rates. The debt is too high!!!
US Treasury can not afford 5% rates with $30 Trillion debt.
The interest on debt will be bigger than the tax revenues.
> FED can NOT raise rates. The debt is too high!!! <
I think you and TexasGator are right about that. The Fed will accept the risk of high inflation in order to keep Congress’s borrowing costs low.
That will work until it doesn’t. Then look out below!
As a side note, I’ve read that blue-chip companies do okay in periods of high inflation. And that’s because they can raise prices easier than most other companies can. I don’t know how true that is, but maybe it’s something woth considering investment-wise.