Why the Fed keeping rates higher for longer may not be such a bad thing
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Higher interest rates are not having a substantially negative impact on the economy. The Fed is not expected to cut rates in the near future, but there may be potential for additional rate hikes if inflation doesn't ease. The impact of higher rates on profit margins and consumer behavior will be revealed during the current earnings season. Higher rates can be a good sign if associated with growth. The Fed's monetary policy may not have as much influence on the economy as believed. Rates do matter in financial markets and can affect economic conditions. The Fed's current projection of a 'neutral' rate at 2.6% is unrealistic, and the neutral rate could be as high as 3.5%. The national debt has increased significantly since the COVID-19 pandemic, but fiscal largesse has masked the impact of higher rates. However, higher rates are starting to affect consumers, particularly low-income earners. There may be a need for the Fed to eventually lower rates to alleviate the burden on consumers.

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https://www.cnbcafrica.com/2024/why-the-fed-keeping-rates-higher-for-longer-may-not-be-such-a-bad-thing/