The Effects of Hiking Interest Rates on the Real Economy

Hiking interest rates could actually cause inflation because it simulates bank lending. The idea that rade cuts stimulate lending and credit never made sense to me either. If you look at what the banks or if you hear what the banks are saying on their quarterly Your calls or like other balance sheets, they have tremendous amounts of retail deposits They basically don't access the wholesale funding markets anymore and retail deposits are zero interest rate Basically forever in my view.