Forward Guidance cover image

The Fed Put Still Lives | Vincent Daniel

Forward Guidance

00:00

The Crowding-Out Effect of Interest Rates

The Fed can't possibly raise rates to 3%, let alone 5%, because there would be a widespread default borrowing costs would go up. I personally think there's no way we could afford interest rates to go to 6% to 7% and stay there, right? If they stay there, then all of a sudden, we're talking about an interest expense line item on our balance sheet that is materially higher than almost anything else other than healthcare. That's freaking scary, that our interest expense is a bigger payment than defense. That's insanity.

Transcript
Play full episode

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
Get the app