Trump Tax "Hoax" Would Blow $5 Trillion Hole In Budget Over Next Decade: Analysis

originally posted by: TonyS
a reply to: ScepticScot

The Feds have no choice except to raise the rates.

They have plenty of choices

a reply to: UKTruth

As interest rates rise, Banks margins improve to the point they can profit. With near zero interest rate, they have no incentive to loan. As well, in a rising interest rate environment, Businesses start t borrow more for capital expenditures on the idea, better to borrow today at 2.5% rather than next year at 3.5%.

I thought everyone knew this, its capitalist economics 101.

originally posted by: TonyS
a reply to: UKTruth

As interest rates rise, Banks margins improve to the point they can profit. With near zero interest rate, they have no incentive to loan. As well, in a rising interest rate environment, Businesses start t borrow more for capital expenditures on the idea, better to borrow today at 2.5% rather than next year at 3.5%.

I thought everyone knew this, its capitalist economics 101.

Higher interest rates reduce borrowing as it's more expensive to borrow. Borrowing is constrained by demand not supply.

One of the two main reasons for a central bank to increase interest rates is to reduce borrowing and thereby reduce demand in the economy.

Why do you think interest rates are reduced when in recessions and increased when we have inflation?

originally posted by: TonyS
a reply to: UKTruth

As interest rates rise, Banks margins improve to the point they can profit. With near zero interest rate, they have no incentive to loan. As well, in a rising interest rate environment, Businesses start t borrow more for capital expenditures on the idea, better to borrow today at 2.5% rather than next year at 3.5%.

I thought everyone knew this, its capitalist economics 101.

You should seriously consider changing textbooks.