Video: Interest Rates “Normal For Longer”

You’ve heard me say that we should be thinking of current interest rates as “normal for longer” rather than “higher for longer”.


Interest rates over the last 15 years were abnormally low. It’s not that current interest rates are abnormally high (in fact they’re closer to normal). You need normal interest rates for an economy to properly function.

If you want to drive asset prices higher, then you drop interest rates to abnormally low levels. That’s what the fed has been doing ever since 2002 (when they decided to create a wealth effect through the housing market).

This results in significant increase in wealth disparity. There are also obscene levels of debt.