Friday, September 18, 2015

An Economy That Can't Even Stand a 1/4% Interest Rate Hike?

Normally, when the American economy is trying to recover from a recession, the Federal Reserve lowers interest rates to stimulate borrowing, and in theory, cause job growth and economic expansion. Since early in the last recession, they have held interest rates between zero and one-quarter of one percent. Yet, all that time, the economy and the jobs situation have been so weak that the Federal Reserve hasn't been able to raise rates.

Last Thursday, the Federal Reserve was expected to raise rates by a baby-step:  a quarter of a percent.  But, once again, they avoided the hike for fear that it might not only hurt our economy, but the global one, also.

To all those who claim that our economy and employment is strong, the Federal Reserve's inaction speaks volumes to the contrary.  The fact is simple.  Under Obama, we have had the weakest recovery since 1932.  The fact that the Federal Reserve has had to hold rates at zero to 1/4% just proves that weakness.


Stuck on Zero - Wall Street Journal:

Obama Owns Worst Economic Numbers in 80 Years, Since 1932:

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