Part 7/11:
A central debate focused on whether the Federal Reserve should adjust interest rates. Some participants, like David Bonson, argued that rate cuts might be beneficial—not to fight inflation, which remains controlled, but to address specific rate-sensitive parts of the economy, such as the housing market and corporate debt.
Bonson stressed that many sectors, especially real estate, are experiencing strain due to higher mortgage rates and debt resets. He advocates for the Fed to consider cutting rates to support these sectors, suggesting that current tightening measures could be unnecessarily hindering economic segments that do not pose inflationary threats.