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Updated about 2 years ago,
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Fed Deficit and Fed Interest Rate
Intentionally waited till after the elections to ask this question. I’m looking for actual info. Anyone jumps on with political agendas I’ll dog them.
Was watching a YouTube and they mentioned the fed can’t increase the interest rate much further and it will probably go down next year. Their assumption was based on looking at prior debt levels and increases in Fed rate at the time.
Their premise is our National debt is so high now that we can’t increase the interest above x%. We couldn’t both service the interest payments or support our commitments.
Fed options would be to print money at a level unheard of which would cancel the US dollar as the world fiat currency. Or if we defaulted on a payment, again the US dollar would lose its standing as the fiat currency. Our entire financial and economic system would plummet.
Again can someone reference a podcast, YouTube, or article that addresses the question what is the stopping point on the Fed interest rate subject to these considerations?
Again forget the politics.
Thanks.