Arguably if the investment here works out we’ll see deflation through extreme technical advancements.
But raising interest rates and keeping them high in an environment where runaway government deficits and high government debts are causing inflation runs the risk of exacerbating inflation.
You have high interest rates on a large amount of government debt which continues to push _more_ money into the economy.
The Fed doesn’t have any real options at this point but to lower rates.
At some point we need to address the elephant in the room and ask people specifically what they mean by "high" rates, because 5% isn't particularly high by historical terms, it's only high for people who never paid attention to interest rates before 2010.
I don't know what the "new normal" is though. I suppose 2025 will be used to figure that out. I don't think 4.75% will be enough.