Fed has more options than 0% interest rate or recession

If the specter of gradually raising interest rates from near zero is enough to cause a panic in the markets, perhaps the Fed should take it as a sign of the financialization of the economy. America has gone too far. In the last tightening cycle, stocks plunged in late 2018 before the central bank was even able to fully hit the 2.5% neutral rate, forcing a hardline trend to cut rates. capacity. It is possible that after the recent strong rally in risky assets, investor sentiment will soon change. If the Fed means what it says and wants to do monetary policy from the bottom line to zero, then letting stocks and credit markets get caught up in stimulus measures isn’t the way to go. that. When my colleague on Bloomberg Opinion, Matt Levine, started a column by saying “the bottom line is that things aren’t right right now” and pretty much everyone agrees, is something wrong? is fine.