The Fed has a target of two %, but let's say it's just seven % year in your out. Is that a bad thing? What's wrong with thim? Well, first of all, it's bad if it's not across the board. It really erodes the ability of a monetar policy to work any more. And so that's taking away a big part of stabilization in the economy. Fortunately forus, we've given up on that. The interest trate is a very important variable in economy,. effects how much people invest, how much people save.