[licnep]

Like Warren Mosler (founder of MMT) argues, you can think of rate hikes as basic income for the rich.

Since the US Debt to GDP ratio is so high now, rate hikes are creating a higher deficit spending from the government into the economy (bondholders) which can be more than enough to counteract the contractive effect of rate hikes.

https://fred.stlouisfed.org/series/MTSDS133FMS

[anonporridge]

Can't you also think of rate cuts as basic income for the rich, because they tend to cause a rise in asset values as money searches for yield, and the rich own most of the assets AND rich people can take out very low interest loans backed by their assets rather than selling, which allows them to spend money without triggering a tax event?