Comments from Kaplan:
- Keeping rates near zero for too long hurts savers and leads to greater fragility and imbalances
At some point the Fed needs to confront what happened to markets in March. The pandemic wasn't a complete black swan, it built up over weeks and days. Markets utterly imploded, including the Treasury market.
That's not a system that can withstand real stress and that has to be addressed at some point. It's far too fragile and it's clear to me that there's just too much leverage. Leaving rates at zero for four years sure isn't going to help.
