The Federal reserve is cheapening the recovery with low interest rates
7 Jul
Earning money too easily has its own risks. First fed the real-state bubble, now, despite what we could think, could be cheapening the economic recovery.
When reducing the interest rates to almost 0, the Federal Reserve helped to prevent an economic collapse. However, in front of a weak recovery, many thing than the Federal Reserve is creating deflation.
The question of the million is why banks aren’t spreading credit, specially to small companies who are the motors of economy. One of the answers is that there isn’t demand of credit, but the lack of supply has his role too.









