Increasing interest rate is usually put in place to slow the economy and slow down inflation.
A segment of the public has an excess of money and production cannot keep up with the demand.
The pandemic was the perfect example of this and put us in the situation where inflation ruled the day.
Now there are signs that the demand for employment has slowed, and manufacturing has increased, whether within our boarders or not.
So, by decreasing the interest rate it helps with spending and investment.
The hold thing is a balancing act.
And other than some tax incentives government has very little to do with where the economy is today or tomorrow.
What drive this are the average American. What they want and when they want it and are the products there to meet their demand.
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