Federal Reserve

The consequences of keeping interest rates artificially low for an extended period.

"But old habits die hard, and economists still expect that rates can and will go back to normal. They assume that since the economy is now apparently on solid footing, the period of ample accommodation is over. In reality, we have built an economy that is now so leveraged that it needs zero percent interest rates just to tread water."

But neither of those views of the economy is correct. Our economy is bifurcating. The rich economy bubble keeps expanding but the middle class and poor economy is contracting. The aggregate may look stagnant, but it's not.