DDM - MacroView: Is The Fed Stuck With 'Forever Stimulus?'

• While the data is clear that ongoing stimulus programs lead to weaker economic growth and a rising wealth gap, is the Fed stuck with "forever stimulus?"
• The trap the Federal Reserve has stumbled into is that it continues to require more interventions to sustain lower rates of economic growth. Whenever the Fed withdraws interventions, economic growth collapses.
• In an economy laden by $75 trillion in debt, a record number of "Zombie" companies kept alive only by low borrowing costs, and a near-record number of companies with negative equity, higher rates are a "death knell."
• The problem comes when they can't do more, or the markets demand more than the Fed can give. That is the point where "instability" will exceed the grasp of central bankers.

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