Discuss the pros and cons of a fed''s low interest rate

Reference no: EM133426188

Question: The U.S. remained in a low interest rate environment for almost a decade after the deep recession of 2007-2009. For the longest time, the Fed kept short term interests close to zero. They raised them somewhat towards the tail end of that decade but then went back to historically low rates with COVID 19, before raising them again. As a result of rather low (nominal) interest rates, some of the short-term interest rates have sometimes been negative in real term. This could have various impacts on the economy. Please discuss the pros and cons of a Fed's low interest rate policy on the economy. Please be specific as possible.

Reference no: EM133426188

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