The Federal Reserve has artificially forced interest rates to unheard-of lows for over two years and intends to keep doing so for another two years. Interest rates determined by the market should replace this harmful policy.
Artificially set low rates:
1) Reduce the income of savers, so they cannot spend to stimulate the economy
2) Force lenders to set impossibly-high standards for borrowers because the low rates can’t cover any risk. Thus, average businesses and home buyers find loans unavailable.
3) Inflate consumer prices, as anyone who buys groceries knows.
The last two years have amply demonstrated that low rates do not stimulate business. Any business seeing an opportunity will gladly borrow at the prevailing rate. The problem with low rates is that if there is any risk a