ˈdälfən™🐬 💥 🌊 on Nostr: But is that wise? Analysts believe that: "If the Fed were to set the short-term ...

But is that wise?
Analysts believe that:

"If the Fed were to set the short-term interest rate that is its primary tool lower than necessary to achieve its congressional mandated goals of maximum employment and price stability, history suggests that the likely result would be unwelcome #inflation. Lower rates tend to stimulate borrowing and faster economic growth, and when demand grows faster than supply, prices rise."

/5🧵
#USA #US #USPol #USeconomy
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https://www.brookings.edu/articles/should-the-fed-cut-interest-rates-to-make-it-cheaper-for-the-federal-government-to-borrow/