Veteran Economist Jim O'Neill believes that central banks should keep interest rates around 5% for a longer period, even as inflation decreases. Although the US Federal Reserve is expected to maintain interest rates at its next policy meeting, market pricing suggests that rate cuts may occur in 2024. The US consumer price index for July is expected to show a modest increase, but it remains well below the previous year's high. O'Neill argues that rates should remain high to bring inflation towards the 2% target and stabilize the economy. He also notes that the US is well-positioned to avoid a recession.

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