Last week, the Federal Reserve responded to Wall Street's coronavirus panic with an "Emergency" interest rate cut.
More rate cuts would drive interest rates to near, or even below, zero.
Lowering interest rates punishes people for saving, thus encouraging consumers and businesses to spend every penny they make.
Boston Federal Reserve President Eric Rosengren has suggested that Congress allow the Federal Reserve to add assets of private companies to the Fed's already large balance sheet.
Allowing the central bank to buy assets of, and thus assume a partial ownership interest in, private companies would give the Federal Reserve even greater influence over the economy.
Federal Reserve manipulation of interest rates is an attempt to set the price of money.
Federal Reserve attempts to set interest rates distort the signals sent by the rates to investors and business.
http://www.ronpaulinstitute.org/archives/featured-articles/2020/march/09/central-banking-is-socialism/
More rate cuts would drive interest rates to near, or even below, zero.
Lowering interest rates punishes people for saving, thus encouraging consumers and businesses to spend every penny they make.
Boston Federal Reserve President Eric Rosengren has suggested that Congress allow the Federal Reserve to add assets of private companies to the Fed's already large balance sheet.
Allowing the central bank to buy assets of, and thus assume a partial ownership interest in, private companies would give the Federal Reserve even greater influence over the economy.
Federal Reserve manipulation of interest rates is an attempt to set the price of money.
Federal Reserve attempts to set interest rates distort the signals sent by the rates to investors and business.
http://www.ronpaulinstitute.org/archives/featured-articles/2020/march/09/central-banking-is-socialism/
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