Rate Hikes Leading to Recession?
Editor, News-Register: As I understand economics, prices inflate because the demand for things exceeds the supply. So, how to increase the supply of goods? Get investors to invest in more production, and hire more workers. How to incentivize investors? Lower interest rates so they can borrow affordably. Why is the Federal Reserve raising interest rates? Aren’t they doing the exact opposite to cure inflation? Some believe that lowering interest rates enables consumers to buy more stuff which increases demand over supply. So, lowering interest rates must be ...