LPL Financial Chief Investment Officer Burt White says that interest rates must rise for the U.S. economy to grow.

“We are not being let out of the hospital,” White says.

He says Fed policymakers are hamstringing gross domestic product growth by disallowing rate rises. GDP growth stands at 2.1 percent, White says, but needs to be between 2.5 percent and three percent for the U.S. to close the $365 billion gap of “potential” that exists.

“Incomes are down, but debt is up,” White says. “Luxuries are cheap, but necessities are expensive.” This isn’t a good recipe for middle class growth, which is needed to spur the economy into action—and gains.

In addition to rate rises, businesses should be investing in facilities, equipment and expansion and growing capabilities. At the same time, wages need to increase. All this will prompt spending and move the economy away from its stagnant savings dilemma.

Despite huge market gains over the past several years, fewer people invest now than during the 2007 bull market, White says.

“Low rates haven’t spurred new spending,” White says. Instead, they have “lulled potential” into savings.

White’s comments came during an opening general session at LPL’s annual advisor conference in San Diego.