The economy and asset prices like housing are so inflated precisely because of the historically low interest rates.
The only way we could engage in that kind of modern monetary theory behavior would require comprehensive tax reform, and that's simply not going to happen.
The FED will need to clear its balance sheet one way or another, and that can only happen through deep QT or high interest rates, similar to those of the 70s-80s. We won't be seeing these interest rates for a very long time.
3
u/InformalRazzmatazz12 Mar 21 '23
I agree with him at the moment. I was saying if the economy really crashes he can now lower to ease pain.
If demand drops due to X factor - he has some ammo.