No. of Recommendations: 4

I don't think this is true. Interest rates have already risen quite a bit above zero and they continue to creep up. There will be a time when inflation heads up again and the Fed responds by raising interest rates significantly. The past ten years have been an anomaly, not a new era.


I don't think I agree with you on that. Somewhere way down the road you may be correct but anytime in the next decade or two I do think it is a new era in the sense that the US simply can't afford high interest rates due to the huge debt payments they have to make.

Now maybe some external factors will come along and nothing the US does can control it but I think the FED especially wants to maintain interest rates and inflation on the low side and will do everything possible to keep it relatively low.

The 70s/80s had a number of factors that contributed to the high inflation, everything from going off the gold standard, price controls, etc. Obviously with the state of politics similar mistakes could be made again but I think it falls into the very low probability side of things.

I do think the FED would like to get the rates up to 3% so they can drop them in the event the economy needs stimulating.

We'll see.
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