"Salon Talks" host Carrie Sheffield on Monday sat down with global affairs and economics journalist Ali Velshi to discuss the effect — real or perceived — of an interest rate hike on the U.S. economy.
"This is a very important moment that we're in," Velshi explained. "Are rates actually going up? And what does the world look like with higher or more normal interest rates? We haven't seen that for eight, nine years."
"We're not too far from that," but the Federal Reserve raises rates in quarter-point increments, so the U.S. may not see a "comfortable" interest rate — between three and six percent, by Velshi's calculations — for another decade.
"But ultimately we're very worried that the world will just collapse if we actually have interest rates," he continued. "The idea that you might pay six or seven percent for a mortgage doesn't mean the world is coming to an end."