Why higher interest rate could be boosting the US economy

The jump in benchmark rates from 0 to over 5 per cent is providing many people with a significant stream of income. PHOTO: AFP
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As the US economy hums along month after month, minting hundreds of thousands of new jobs and confounding experts who had warned of an imminent downturn, some on Wall Street are starting to entertain a fringe economic theory.

What if, they ask, all those interest-rate hikes the past two years are actually boosting the economy? In other words, maybe the economy isn’t booming despite higher rates but, rather, because of them.

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