The Federal Reserve doesn’t control mortgage rates. It’s all up to the MBS market. The Federal Funds Rate direct affects the Prime — the rate at which business borrow.
I don’t see how a low interest rate regime in America is sustainable because we need to attract foreign investors to finance our deficit spending.
In the 1980s Reagan spent out way to a recovery. Unfortunately, we don’t have that option anymore because of the Iraq War and most importantly because our deficit and debt are already too high.
