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.
If you can’t make money in a profitable business when rates are 2-3%, the problem is not the rates - it’s you. Once rates get below a certain number, they prevent growth rather than stimulate it. Investors will borrow money at near 0%, and put it into stocks paying 3%, and arbitrage their way to wealth. Why bother conducting business when you can just move money around on a computer screen?
That’s what happened during the Obama years. Higher rates will force businesses to actually try to make and sell goods, rather than just cooking their books.
How about letting a faltering economy just work the cobwebs out and let the recession that WILL happen run its normal course instead of gerrymandering it?