>>>The Fed Funds Rate is now 1.75%. What would be happening in the U.S. economy today if that rate was set at, say, 0.75%?
Corporate balance sheets are already pretty highly leveraged. All that liquidity the Fed is providing seems to be going into two asset classes, equities and home values. We don’t see a lot of busimnss investment considering the level of rates.
That’s really my point. If you don’t see a lot of business investment when the rates are NEAR historic lows, you’re not likely to see much when they’re AT historic lows, either.