The Fed’s foolish interest rate policy is stopping America’s economy from booming

Analysis argues Fed's high interest rate policy is misguided as inflation remains controlled and historical data shows weak correlation between rates and inflation

Most analysts believe that the Federal Reserve’s decision to keep interest rates high, relative to the average rate over the past 15 years, is being driven by fear. The Fed’s decision to keep rates high is, by design, keeping America’s economy from booming.  Justin Haskins is a New York Times bestselling author, senior fellow at The Heartland Institute, and the president of the Henry Dearborn Liberty Network.

The federal funds rate — the interest rate at which depository institutions lend reserve balances to each other overnight — is a powerful tool used by the Federal Reserve to influence U.S. economic activity. Changes to this rate ripple throughout the economy, affecting borrowing costs, consumer behavior, and, ultimately, the broader business cycle.