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southern MN | I don’t really understand the manipulation of the economy, but interest rates are one of the bigger ways the fed has to change/ control things.
A low interest rate encourages spending and good times from a sluggish economy.
High interest rates slow down a run away economy that will crash and burn on its own.
We have been in low interest rates for a very long time. The economy seems to need the help, so likely will remain so for now.
When interest rates are too low (as they have been close to for some time) or too high as they were in the 80s, the govt has kind of lost control and things are going to blow off to their own results.
How we get from here to there or back again, and when, is way above my level.
Someday it will flip around, I thought it would have a decade ago and I was wrong, so who knows.
Paul | |
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Can interest rates do this forever?
