Do we need a FED?
Interest rates should reflect the rates of price increases.
If Walmart and its suppliers raise prices by 8% interest rates should be around 8% plus about 2% (10% total) to adjust for income taxation on interest.
Markets are higher now than before the fed rate increases.
All the gop and dem covid cash is still out there and pumping the markets and the rest of equities.
Interest can be partially added to principal.
If the basic mortgage interest rate is say 7%, the mortgagors might pay 4% and have 3% added to the principal annually.
The federal debt is not self-amortizing.
When say prices and wages have doubled, which might be 10 years out, the mortgagors can pay the whole 7% and their mortgage can become self-amortizing.
This is good news for mom and pop who keep their money in CDs.
“Interest Expenses Soar At Big Banks As Fed Tightens Money”
I know of no US bank that pays interest rates on CDs that keeps up with inflation.
Bank depositors lose buying power on their deposited funds each and every year.
When Biden’s digital dollar is the thing you’ll have no money
According to Dr. Milton Friedman the FED's job is to control money supply, not tinker with interest rates.
“The Fed has to raise rates to prevent disastrous impacts,”
The Federal Reserve can stabilize the dollar, but the housing market is overstimulated by the stock market and the Federal Reserve can no longer reign in the stock market. Leading companies now have the product & service pricing power to maintain their stock prices.