What If Fed Rate Hikes Are Actually Sparking US Economic Boom?
- A radical theory is spreading as economy defies expectations
- ‘The reality is people have more money,’ one convert says
The Marriner S. Eccles Federal Reserve building stands in Washington, DC.
Photographer: Erin Scott/BloombergAs the US economy hums along month after month, minting hundreds of thousands of new jobs and confounding experts who had warned of an imminent downturn, some on Wall Street are starting to entertain a fringe economic theory.
What if, they ask, all those interest-rate hikes the past two years are actually boosting the economy? In other words, maybe the economy isn’t booming despite higher rates but rather because of them.
