That depends on your bias. Does the fed "induce a recession" when it raises interest rates or does the Fed "induce inflation" when it lowers interest rates? Lo

That depends on your bias. Does the fed "induce a recession" when it raises interest rates or does the Fed "induce inflation" when it lowers interest rates? Low interest rates creates the mortgage crisis. If there is "full" employment, then low interest rates cause a massive problem because it prints money that has nothing to buy. It is appropriate to turn off the money spigot when the economy has no more room to grow.