Nancy Lazar

And it's like, wait, potential GDP growth has two components.

One is labor force growth, population growth, and the other is productivity growth.

And they seem to forget about that.

And productivity growth is boosting.

All you have to do is look at the CBO data.

CBO has data on potential GDP growth, and it has moved up to about 2.5%, which I don't hear anybody talking about, which suggests that real interest rates are about right.

We don't need cuts in interest rates.

Obviously, now the community is talking about higher rates.

We don't think that either, simply because this is a tax on the economy.

Fed policy is not overly aggressive.

So at the end of the day, we think rates are about right.

It is.

We had that call before the oil shot, before the war.

Because, again, we have fiscal policy, which is stimulative to growth to the tune of about 1.5% of GDP.

And, again, it's the right stimulus.

It's tax incentive.

It's CapEx incentives.

Second, the Fed has already cut rates 175 basis points.

They're below nominal GDP growth.

And then third, banks are easing lending standards.