This is not a discussion about the coolest hair color, but the influence from raising interest rate adjusted by the Fed.
It is mentioned in the article that "Raising interest rates now is a disaster for small business owners who
need loans to hire more workers and Americans who need more jobs and
higher wages." We can also rise the real wage by "keep interest rates as low as possible for as long as possible." Indeed, keeping a low interest rate can benefit both firms and households. But in the long run, the higher wages will lead to higher cost of production and higher prices in the future.
If the Fed keeps the low interest rate for a long time, will it slow down the growth rate of consumption?
Link: http://www.huffingtonpost.com/ian-reifowitz/do-janet-yellen-and-berni_b_9134908.html
My initial question in regard to the article was whether or not the demand is persisting for more workers and higher wages. The current unemployment rate is at 5.5 percent and underemployment is at 14.6 percent so the proposal is understandable however the continual fall in unemployment seems to negate the idea in some regard. The main point seems to be to allow the economy to continually recover so in terms of keeping the interest rate low for the sake of investment is an acceptable proposal
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