[ANT] New comment on Meghan McCain react to Pres. Trump specifying that....

Erin Burnett has left a new comment on your post "Meghan McCain react to Pres. Trump specifying that...":

Rate hikes could set off a crisis

But that equation would change, of course, if rates rose sharply. Given the sheer magnitude of the debt, even a tiny increase in interest is costly. Interest payments were the fastest-growing expense for the federal government even before the crisis.

One risk is that a surprisingly strong rebound in the US economy forces the Fed to rapidly reverse course.

"If the economy comes back too hot, then you could have inflation, higher interest rates -- and that could lead to a fiscal crisis," said JPMorgan's Kelly.

That's exactly why some believe the Fed will be forced to keep rates at rock-bottom levels. "It will be that much harder this time to wean the economy off ultra-low rates because the debt is that much greater," said Invesco's Hooper.

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Posted by Erin Burnett to ANT at May 6, 2020 at 7:41 PM