LAPC Uphold Interest Rates Low & Economics Implication Policy Discussion

Last week, the chair of the Federal Reserve, Jerome Powell, announced that they plan to keep interest rates low for the foreseeable future. This has some big implications for our economy.

By keeping interest rates low, the Federal Reserve is hoping to encourage more spending in our economy. Their hope is that this will lead to more jobs and higher income levels. The drawback of a policy like this is that it can lead to inflation though. As more spending occurs, there is upward pressure on prices.

For this discussion, I would like you to offer your opinion about whether this is a wise policy. Explain why you draw the conclusion that you do. Based on current conditions, do you think addressing unemployment is more important than limiting inflation?

I’m looking forward to your responses!