3 ms·

This is my view as well, high interest rates fuel inflation just because people want higher profit for the risk than they could get if they just rested their mo

• arnorhs 2y ago
  Not at all. In a debt-based economy, rising rates put downwards pressures on capital distributors, since they have to get more than the fed rate back on any investment/loan. Higher rates -> reduced money supply -> increased unemployment -> reduced demand => lower inflation. While lower rates -> reduced unemployment -> increases market demand -> raised prices = increased inflation