Fed needs to ignore ‘taper tantrums’ and let longer rates rise

The growth in private lending effectively reflects an unintended disintermediation of the traditional banking system. This has meant liquidity destined for the real economy has largely been trapped in the financial economy.

Allowing long-term rates to increase would not only begin to restrain financial speculation as risk-free rates rise, but could simultaneously foster bank lending to the real economy. 

FT 24 February 2021

https://www.ft.com/content/de842649-2125-4e7d-aa78-fad2ef85cb75