I learned that low fed interest rates makes ppl borrow more, stimulating economy as money circulation is higher. why ever increase it then, if increasing it worsens the econ?
Also ,is the fed reserve actually the goveernment bank? heard it was still a giant private bank and the goverment has nothing to do with it
In: Economics
On the plus side, lowering interest rates encourages borrowing; by businesses, for expansion, and people wanting to buy homes.
On the negative side, it makes it tough on people trying to grow their savings for retirement (or retired people trying to live on a fixed income, that includes their savings).
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