1. The Fed is Hurting the Economy - Audit it Now - by Logan Albright
The business world is all abuzz with rumors and guesses about what
the Federal Reserve may or may not do in the next couple of months. The
Fed has given indications that it plans to raise interest rates in the
near future, but after markets experienced significant turbulence, many
investors are now betting that the Bank will hold off and keep interest rates low through the end of the year.
The Fed hasn’t allowed interest rates to rise since 2006. A weak
economy and (reportedly) low inflation over the past decade have
encouraged the Bank to continue to expand the money supply, keeping
interest rates down to incentivize borrowing. This policy is based on
the Keynesian assumption that the economy suffers from insufficient
demand, and that using government to provoke more spending can turn
things around.
Read more here...