The Federal Reserve has held interest rates artificially low for decades. Even after pushing rates to zero in the wake of the 2008 financial crisis, “normalization” only managed to raise rates to 2.5% — hardly “normal.” The central bank began cutting rates in 2019, even before the coronavirus pandemic.
But what difference does it make? Why do artificially low interest rates matter? Peter Schiff explains in this clip from his podcast.
Treasury Secretary Janet Yellen has conceded that we may well get more inflation than originally expected with all of this government stimulus. But she said if we do end up with higher inflation and higher interest rates, it’s a good thing. It will be good for society, and it will be good for the Federal Reserve.
Peter Schiff talked about it in this clip from a recent podcast.