Let us celebrate and defend them. Let no one say that the unemployment rate is too low. And especially let no one say that the productivity growth rate is too high. However, inflation, apart from oil prices, is not one of them. High interest rates are a danger.
American households have too much debt.
They will become vulnerable when interest rates rise. Stock market speculation is a danger. Margin lending is exploding, and those loans will be exposed if stock prices decline. Some of that is already happening. Rising interest rates and speculation on credit are an explosive mixture.