This week, the author of a Barron's cover story posits that it's time for the Fed to raise interest rates. The macro debate for and against doing so, I'll leave for economists. The populist argument in favor of raising rates, however, I'll explore.
The Barron's article which is titled, "C'mon Ben!" is accompanied by a reminder that keeping rates so low "hurts savers." Additional fallout mentioned by author Andrew Barry, includes the stoking of inflationary flames and erosion of the dollar. All I know is this...
America is a debtor nation with a debtor populace. So the notion of helping savers save - unfortunately falls on too many deaf ears.
The Fed keeps the cheap money flowing, but also keeps our returns from savings accounts, money markets, CDs, etc. -- at paltry levels. When will we reward citizens who save and invest conservatively, instead of the reckless masses who borrow to consume?