As in, where would the Fed have rates if we were in "normal" economic times? Before 2000, 5% was considered a low Fed rate. Now, it's considered extremely high. Where will rates be when the dust settles after the Fed's fight with inflation?
Personally, I think that we will go back down to a rate that floats between 1-2%. My theory is that we entered a new economic paradigm in the 2000s. Before, the average person relied on traditional bank accounts to preserve savings/retirement funds and didn't have access to capital markets. Brokerage accounts were for the elite. Now, the average person has fairly easy access to capital markets directly, through online brokerage accounts, or indirectly, through 401k and IRA providers that allow contributions to equities.
Because of this, I think that the Fed will continue to keep rates low in order to encourage investment in capital markets and drive economic development more than would happen with higher interest rates.
Thoughts? Does anyone have any options and, hopefully, any evidence/information on where the Fed plans to put rates in the long term?
[link] [comments] https://www.reddit.com/r/stocks/comments/141ujwt/does_anyone_have_any_information_or_opinions_on/
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