Current FED is doing an admirable job in raising rates at deliberately slow and orderly fashion. I am in my late 70’s, and have seen FED rates increased much faster.
What the modestly higher rates by FED will do is build tools available to counter-act when next recession actually hits, by HAVING ROOM TO LOWER RATES. I do not support big jumps in interest rates. But modest rate increases are necessary to reduce the hard asset bubbles existing currently. That will avoid a big bang crash or depression later.
Europe has it’s tit in the ringer because they have near zero (negative in some countries) rates already, and have nothing left to stimulate the economy in the form of lower rates, except go more and more in debt, just like Japan has been doing.
If rates can not be increased during lowest unemployment periods, there never is going to be a more opportune time.
I think that is a reasoned argument. There is a valid issue addressed, but I think it eats on itself if your plan is implemented.
I still do not think a rise of 5% over lets say five years, does anything to help the economy.
It still eats up our tax cuts. It still drives businesses under water. It still causes a drag on the economy.
It still causes inflation.
It still results in you having to pay more for everything, including your debt.
These negative outcomes are why you have a recession in the first place.
What you are arguing for is room to react to a recession you basically planned.