Thursday, November 26, 2020

Tag: The Federal Reserve’s Rising Interest Rates Are A Ticking Time-bomb For U.S. Economy

The Federal Reserve’s Rising Interest Rates Are A Ticking Time-bomb For U.S. Economy

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by Steve St. Angelo, SRSRocco Report:

One of the worst things for an over-heated and extremely leveraged economy is rising interest rates.  So, with the recent 2-2.25% interest rate, big trouble is on the horizon,  Also, with higher interest rates, the U.S. Treasury will have to fork out even more money to service its debt.  In just a little more than two years, the U.S. Fed Funds Rate jumped by nearly 2%.

This is indeed a big change for the Federal Reserve’s “economic stimulation policy” as it kept interest rates below 0.25% since January 2009.  And with extremely low-interest rates, nearly zero, it allowed the United States to more than double domestic oil production.  Unfortunately, this newly created oil supply has come at a huge cost.  It has created another big mess which I call the U.S. Shale Ponzi Scheme.