Quote:
Originally Posted by joosttx
Having higher interest rates will help promote the initiative for cutting budgets and lowering the Federal debt.
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I am curious why you say that, given that historically, that hasn't been the case.
For the budget, for example, the deficit went from 9.8 percent of GDP down to 2.4 percent of GDP over the period when the Fed was keeping interest rates at zero.
The times when the deficit has risen, interest rates have been higher (if only because they have essentially always been higher than now).