Wednesday 15 March 2017 4:01 am
Next comes the issue of how long interest rates can remain low without damaging the economy. After all, each increase is only 0.25 per cent these days – if we cannot take that then there are worrying implications for the state of economic play.
But savers and pension funds need some balance in the situation versus debtors – it is approaching a “lost decade” for them. Thus, with inflation rising and the side effects of keeping interest rates low for so long building, the real issue is if not now, then when? The world economy needs a better balance than what it has at the moment.
As the Federal Open Market Committee meets, is the US economy ready for higher interest rates?