Would Romney raid interest rates? (and what would happen if he did?)

Would Romney in the white house raid interest rates? (and what would happen if he did?)

From what I have seen over the years, Republicans seem to hate the federal reserve because it can influence the economy, and, like delinquent children, they hate sharing (and hate helping regular people even more).

Knowing how much the right hates the Federal Reserve (and all other government) since Obama came into office, I can only assume that if Romney were to win the Presidency, there would massive pressure on him by republicans to raise our historically low interest rates. What effect would this have on the economy?

My view is that raising interest rates would make lending, borrowing and spending even slower than it is now, which would cripple the economy. Of course this would be somewhat offset by the annihalation of environmental and moral regulations which is sure to take place, but even so I think it would spook everyone and shatter the fragile status quo. Am I wrong?

reply to post by CB328

Would Romney in the white house raid interest rates? (and what would happen if he did?)

According to the WSJ in April, the FED plans to raise the rates in 2013.

WASHINGTON (Dow Jones)--The Federal Reserve will likely need to start raising interest rates in the middle of next year to keep inflation in check, Federal Reserve Bank of Richmond President Jeffrey Lacker said in a statement early Friday.

"I dissented because I do not believe economic conditions are likely to warrant an exceptionally low federal funds rate for this length of time," Lacker said in the statement. "My current assessment is that an increase in interest rates is likely to be necessary by mid-2013 in order to prevent the emergence of inflationary pressures."

link

So to answer your question, YES, ROMNEY WILL BE BLAMED for raising rates!

What will happen? Hopefully it will prevent hyperinflation. I know we can’t afford 4 more years of Obama’s spending spree. Someone has to be the adult here!

reply to post by CB328


My question is why do you think artifically keeping interest rates low for such a long time is good?

I think it's good because in a weak economy you need people to be able to buy new cars and homes, and business loans as well. If you suddenly jack up the rates when people are still uneasy about the economy, spending will come to a standstill.

reply to post by CB328


And you show you have zero training in economics. Artificially lowering interest rates will raise inflation. For short periods the risk is minimal, extended periods can cause severe problems. Inflation lowers buying power of money.