Roach: Fed Should Move Aggressively to Normalize Rates

The video discusses the risks associated with corporate debt in Asia, particularly in China, where state-owned enterprises have a high demand for credit. The lack of progress in reforming these enterprises is a concern. The conversation then shifts to the US, where the Federal Reserve's approach to normalizing interest rates is debated. The speaker argues for aggressive rate hikes to avoid repeating past mistakes and emphasizes that normalization should focus on sustainable long-term interest rates rather than inflation.

What is the potential consequence of failing to normalize rates according to the speaker?

What does the speaker suggest should be the focus of the normalization process?