(MT Newswires) -- Gary Cohn, former White House economic advisor and current vice-chairman of the board at IBM, looks back on his goal of "three" when he was advisor: 3% economic growth, 3% unemployment and 3% wage growth. In his view, these targets would represent an ideal equilibrium point for the US economy. He believes that, since the financial crisis of 2008, the Federal Reserve has taken a leading role in the financial markets with policies of near-zero interest rates and quantitative easing, encouraging investors to take greater risks in order to achieve returns. With the arrival of the COVID-19 pandemic, the Fed kept interest rates low. This decision, coupled with five government stimulus packages, strengthened Americans' personal finances, leading to increased spending and an inflationary cycle. Today, the US is entering a cycle of monetary tightening, characterised by gradual increases in interest rates. Cohn regards the last 15 years as abnormal, but he sees signs that the economy could be heading towards a return to normality.
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