Part 4/7:
There is a consensus among experts that pushing interest rates further—whether by another 25 or 50 basis points—may not be as impactful as some presume. Such incremental changes could do little to change the broader economic picture but might introduce additional risks. For instance, too aggressive rate hikes could undermine economic growth or destabilize financial markets.
Furthermore, some are contemplating strategies such as not reducing the mortgage balance sheet, following insights from sources like the Wall Street Journal citing PIMCO. This approach suggests a nuanced view of interest rate management, emphasizing stability over aggressive tightening.