Renowned economist and best-selling author, Nassim Taleb, believes that regular Americans will bear the brunt of a grave mistake made by the Federal Reserve 15 years ago.

Taleb expresses massive concern

In a recent interview on CNBC, Taleb expressed concern about the entire generation of traders who have never operated without zero interest rates, owing to the Fed’s decade and a half of loose monetary policies.

Taleb forewarns of an imminent fallout as Americans grapple with a higher cost of capital.

“In 2008, we had a debt problem. The Fed put the interest rates at zero for fifteen years. Now, lowering rates to zero made no sense. They panicked. They didn’t try to lower it to 3%, they went all the way to zero. And once it’s at zero it’s very hard to raise it, so now we’re going to have to learn to live within an environment with higher interest rates. And 15 years, that’s a generation of traders, a generation of financial participants who don’t know what interest rates mean.”

He continued and said the following:

“So welcome to the new era. In the new era, we have more debt than we had before. The Federal Reserve’s primary job is price stability, and monetary policy is something that is short-term. They used that tool in place of a structural reform. It’s not made for that, so that’s a big mistake and we’re going to pay the price.”

According to the notes coming from the online pubcalition the Daily Hodl, the outspoken crypto critic also warns that an overheated and potentially weakening real estate market.

It is also important to note the fact that the analysts have touched on in recent months, may be a symptom of the economic reckoning he’s warning of.

In order to learn more details about this, make sure to check out the original article posted by the online publication mentioned above.

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