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> its sort of like saying lets take poison so that if we get sick we can stop taking poison and feel better. Raising interest rates isn't poison. Also, at the

• autokad 10y ago
  "Raising interest rates isn't poison." Higher interest rates are intended to slow down the economy by making borrowing harder. "Also, at the moment deflation isn't a bigger risk. It says right in the article inflation is slowly rising, not falling." 1.74% is very low, and on the wrong side of target inflation. ~3% inflation is considered historic, and we are no where close to getting there. not even a little bit. if that anemic .03 growth went even a smidgen on the wrong side of 0, that would be bad. so yeah, deflation is still a bigger risk.
  • hueving 10y ago
    >Higher interest rates are intended to slow down the economy by making borrowing harder. Which is precisely what you need to do to get inflation under control. You may be correct that inflation is too low right now to tighten the screws, but calling interest rates poison is ignoring the reason the fed sets them.