Lowering interest rates to stimulate economic growth can have several potential downsides. It can lead to inflation if the economy overheats, as more money in circulation can devalue the currency. It can also encourage excessive borrowing and risk-taking, potentially leading to financial bubbles and crises. Furthermore, it can hurt savers, as the return on savings and investments may decrease. Finally, it leaves less room for the Federal Reserve to maneuver if the economy needs further stimulation in the future.
Economics can be intimidating to the person who is not well-versed in business and mathematics. This...
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