Submitted by LessTalkMoreRock1 t3_yhqbqx in wallstreetbets
_TH3BAND1T_ t1_iuicgpv wrote
Reply to comment by Ascension100 in Let’s reflect on Jpows rate hikes up until now. by LessTalkMoreRock1
Well, let's be real the market will tolerate whatever it's given. But, yes close to 0% rates are optimal for fastest growth of economy. It should be remembered though that with 0% interest rates comes gross company valuations and wealth gaps. Along with it comes a more volatile market environment in general due to unnecessary risks of businesses.
Personally, I think that rates should be atleast the inflation rate. This means that 2% would be the bottom of rates. The 0% rates screwed us if you look at the economic reaction from a small virus.
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