2min chapter

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Is the Fed Trapped? (EP.239)

Animal Spirits Podcast

CHAPTER

Is It Possible That We Normalize Interest Rates?

There's no norm 75 basis point. Noof zero. In a booming bull market, can you at least give me that this is not normal? Yes. By the way, i looked at it from my asset quilt the other day. The average return for cash, which is like short trom te billes, for the last ten years, is point four %. And that's nominalythat's nominal. This is not normal. What if this is the new new normal? Stop. We'res term rates are below two % for the next 20 years. That's my base case. Fine, but dude, we're zero. Let's get off zero.

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