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  • Writer's picturePaul Gravina

Why I Believe that Raising Interest Rates Now is a Good Thing

The Federal Reserve is looking to raise interest rates again. And it's a good thing, too.

The Federal Reserve has been trying to keep inflation at a reasonable level since the early 1980s. They've done this by raising and lowering interest rates, which helps control inflation. When the economy is doing well, they raise interest rates so that people don't take out loans to buy things they can't afford. That way, it keeps people from going into debt.

Inflation is a problem that has been plaguing economies around the world for years, and it's time we did something about it. The Federal Reserve has been running a near-zero interest rate policy since 2008. This means that they don't charge very much interest when they loan money to banks, which makes it cheaper for banks to borrow money and lend it out to consumers. Inflation is a real threat to the economy, and raising interest rates helps to keep inflation in check. When the Fed raises interest rates, it also raises borrowing costs for consumers and businesses alike. This helps to dampen demand for goods and services, which slows down inflation. The problem is that this strategy can have unintended consequences. If the Fed raises interest rates too much too quickly, it can cause an economic slowdown, which means less hiring and less spending by consumers who are paying more for their loans. We need to find a balance between keeping inflation under control and avoiding economic stagnation, so we need a Fed that knows how to make wise decisions about when, where, and how often they raise interest rates in order to achieve those goals effectively!

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