If the Fed keeps rates at 5.5% forever without cutting, inflation expectations are declining so tightening conditions would result, slowing growth below potential and pushing unemployment higher—maintaining current rates indefinitely would become problematic.
causalpending
Speaker
Neil DuttaEvidence Quote
“if the FED keeps interest rates where they are forever I mean at what point will that start to cont cause a contraction in economic activity I mean I think it would probably happen relatively soon... considering we're at you know running at about two two and a half percent I mean you could easily see you know an economy growing below potential which could then push the unemployment rate higher”
Created: 8/12/2026, 6:02:32 PM
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