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During and after the Great Financial Recession in 2008-2009 in the US, we have learned that the Fed drastically cut interest rates using unprecedented monetary
During and after the Great Financial Recession in 2008-2009 in the US, we have learned that the Fed drastically cut interest rates using unprecedented monetary policy tools like Quantitative Easing. As a result, US interest rates stayed very low for more than a decade. Economists started wondering about the legacy of this low interest rate environment. Then, the global pandemic hit, furthering the necessity to keep interest rates low. However, since the recovery from the pandemic, we have seen interest rates rising and staying "sticky" because of inflation. Given everything that you know of the economic scenario globally, what are your thoughts on future US interest rates? What other factors besides inflation might drive the direction of US interest rates in the coming months? As an investor, what should your strategy be in case of future high interest rate environments? What are the implications for regulators? What are global ramifications of continued high US interest rates
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