I’m a little confused. If the Fed is keeping interest rates at zero or near zero then how they move up? In other words how can the rate of interest move up again when the Fed has artificially lowered it to zero.
The interest rates must rise back to the natural rate. The interest rate is at 0 because the FED, through inflation, has arbitrarily made it 0. But the banks, which have become completely illiquid, and are all practically insolvent, must raise the interest rate in order to recapitalize. The FED can’t lower the interest rates anymore.