Lacker is 100% right, rates should be higher, but there not because yellen and her central bank friends keep feeding all of the economies with cheap free money and historical low interest rates......notice how the job numbers all the sudden changed everyone's opinion on that possible September rate hike, its all a fu$king joke, its all talk and zero action...nothing will ever be aligned perfectly to create the so called rate hike the fed talks about, its not possible so they use that as the excuse to keep rates at historical lows....sign up Lacker for fed chairman immediately, this guy is all talk but no one is listening. http://www.cnbc.com/2016/09/02/feds...e-significantly-higher-than-they-are-now.html
S2007S...since you agree that rates SHOULD be much higher, can you give us your opinion on what NEGATIVE EFFECT this will cause for the U.S. economy? Inflation, deflation, or currency collapse, etc.
When I say much higher I'm talking about bring rates back to the norm of about 4-6%. I'm not talking the extreme like they were in the 70s and 80s. Would be nice to see the free markets dictate where rates should be instead of rather some fool who believes where they should be.
Thanks for responding. I should've stated my question better. Since rates aren't normalized as they should be, what problems will develop from this? Do you see any specific crisis looming?