Here’s Why Donald Trump Is Wrong About Interest Rates

Summary

  • Even after rising in recent months, short-term interest rates remain below the level suggested by an inflation rate of 2.9% and relatively strong economic growth.
  • A more reasonable Federal Funds Rate would be in the range of 3.25% to 3.50%, which is what the Federal Reserve is projecting for 2020.
  • Interest rates are not too high in July 2018. In fact, today’s level still punishes savers and people living on fixed incomes.

Read my full analysis on SeekingAlpha.com

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