If interest rates are lowered too much, foreigners will sell their dollars and get into euros. There is a tipping point, so the Fed has to be mindful of our addiction to foreign investors. Other FCBs are raising interest rates due to global inflation pressures, so we’ve got to keep ours high enough to attract the foreign money we so desperately need to keep our government employees paid, etc. Party’s over, how can you save a drunk? He’s got to vomit, have a blasting headache, and feel sick for a while. There is no cure for this.
