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. The higher-for-longer stance is due to stickier inflation. The impact of higher rates on profit margins and consumer behavior will be revealed during the current earnings season. Financial markets have largely held up despite the higher-rate landscape. Higher rates can be a good sign if associated with growth. The Fed's active monetary policy may not have as much influence on the economy as it thinks. Rates too high or too low can distort financial markets and undermine the economy. The national debt has exploded since Covid hit, making the Fed's higher rates less noticeable. Credit card delinquency rates have climbed to the highest level in 12 years. The Fed may have to lower rates in the future due to the crushing effect of high rates on low-income-earning Americans.

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https://www.cnbc.com/2024/04/24/why-the-fed-keeping-rates-higher-for-longer-may-not-be-such-a-bad-thing.html