Originally Posted by Literature
Because we want people to make big purchases.
When people are in fear of or are losing their jobs you are not going to get sustained purchases of big ticket items.
You want peope to make big purchases? Make their food and gas cheaper.
An extra $20 a week that doesn't go to the gas tank goes towards disposable income.
Higher rates mean higher returns on things like savings accounts that seniors depend on. The more they earn on interest the more they spend. The less they earn the more they save.