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This may be true if interest rates haven't spent two decades at historical lows
by legitster 5y ago
This may be true if interest rates haven't spent two decades at historical lows
- ProjectArcturis 5y agoOr a knock-on effect of lower wages is lower demand, which reduces the flat-level Fed rate necessary to maintain low inflation.
- pkaye 5y agoDid the low interest rate benefit the workers much? Maybe the home owners, corporations and investors more?
- tootie 5y agoHome buyers and other debt owners sure. But otherwise they weren't intended to help workers as that isn't part of the Fed's mandate. It helps indirectly in that it helps pave the way for the federal government to enact fiscal stimulus via debt.
- chii 5y agoit helps workers as the low interest rate boosts employment due to lowering the risk of investments (which creates jobs at some point in the financial chain).
- redisman 5y agoI don’t think so. In fact it’s driven the housing market (the one asset class where it could have helped) into financial speculation yet again
- imtringued 5y agoThe fed raised interest rates in 2018 and it is considered a policy mistake nowadays.