Uncharted Territory

Would Lowering Interest Rates Be a Magic Bullet for the Economy?

In the last few years, due to printing money and low interest rates, inflation has become a big problem in the U.S. economy. This has happened in past administrations, the most notable being the 1970s, which was called the time of “Great Inflation.” At the time, Paul Volcker was the FED chair and he reduced inflation by increasing the Federal Funds rate to a whopping 19 percent in 1981 and inflation eased to 2 percent by 1983.

Volcker’s tough on inflation stance is Jerome Powell’s current strategy. Powell believes if we rai...