RE: Hat- trick maybe to much to ask f22 Jul 2021 18:47
Casa
Yes all straightforward.....but
Raising rates from a low base will cause a rate tantrum just like the QE tantrum. Banks find it hard to lend money, they're awash with cash, that's why it's parked back at the Fed earning chicken feed.
If the banks don't lend, the gov comes in with guarantees. If people don't borrow on low rates, why would they at higher rates - they wont.
Raising rates will crash the markets, as will QE taper - as it did in the past.