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Why would the Fed raise interest rates?

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Uploaded by on Feb 28, 2007

To slow down inflation

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News & Politics

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  • likes, 1 dislikes

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  • We lost the war ... its time to fight now that we see the reality of things, thanks

  • to give the economy a stimulus they want to put more money in circulation.... really one of the stupidest things that i have ever heard. i think the fed is dumb in general a whole system based around debt. not very smart....

  • ugh.. you gotta be kidding me. if there is more money in circulation then that means the dollar is more worthless. when they lower interest rates that means they are printing out more money. thats their way of getting more money out to the people. think about it like this.... if there is 1 babe ruth baseball card it is worth more then if there was 6 million of that same card....

  • thanks dude... that answered my question

  • when you cut rates, inflation sets in. Also, the chinks are through buying our debt. That makes our money less valuable.

  • I'm confused :) Because if you were correct than why is it that the FED cut intrest rates by 0.5%, yet the US dollar is now worth 0.98 Canadian dollars. Where as before it used to be worth something like $1.27 Canadian dollars.

  • Good call.......

  • you are so smart.

  • Well the dollar is really weak right now, so why aren't interest rates even higher??

  • Watch for a FED intrest rate cut this summer...

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