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Not quite. If you had income generating assets before rates were reduced, you benefited greatly. And credit can still be tight when rates are zero (or negative
by nkabir 9y ago
Not quite. If you had income generating assets before rates were reduced, you benefited greatly.
And credit can still be tight when rates are zero (or negative). Low rates as they stand hurt those that are trying to save.
- TheCowboy 9y agoArtificially increasing interest rates is going to show up in inflation, because no new wealth is being generated. It becomes a wash. No one's wealth is increased.
- skybrian 9y agoDepending on what you mean by "show up in inflation", it sounds like you have cause and effect backwards? The Fed increases interest rates to act as a brake on the economy (less investment) when they think they need to reduce inflation.