Interest rates are near an all time low with the prime rate about 3.5%and the federal funds rate at 0.25%.this has helped to stabilize the economy since the onset of the covid 19 pandemic in march 2020.still unemployment is at record levels and congress has authorized trillions of dollars of economic stimulus. in normal times such aggressive policies might be thought to risk over stimulating the economy. Are there reasons to think this may or may not be a risk at present ? some are counseling the fed to consider increasing interest rates later this year to forestall potential inflation. If you were an outside advisor to fed Chair Jerome Powell what advice would you give to him and why?

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The effect of COVID in the US economy The COVID19 outbreak took a major toll on every economy The US economy has almost certainly entered a contraction Millions of Americans have already lost their jo... View the full answer