Since the 2008 subprime crisis, in order to stimulate the economy, US implemented 3 Quantitative Easing (QE) exercises while driving down it’s interest rates to almost 0% for an extended period of time. Using an analogy where the US economy being a cancer patient, in the past 6 years, the economy went through 3 chemotherapy treatments (QE) and at the same time, was injected with huge dosages of painkillers (low interest rates). It’s probably a good time for the doctor (Federal Reserve) to conduct a review on this patient.
Results indicated that the patient is now able to do away with the painkillers (interest rate was increased). However, though the cancer cells maybe cleared, this patient has not fully recovered, and thus no one can be certain that it would not relapse in future.
The US economy is currently advancing in a high debt, low inflation environment, albeit at ......