Do you think they'll lower interest rates again?

Question

They said they wouldn't, I know. But, with the second largest bank failure in us history, and fannie mae and freddie mac teetering... I think the economy is in a different kind of trouble now; it's not inflation, stagnation, or recession; it's stagnation brought on by energy costs, lack of industry, and several years of artificially low interest rates.

Answer 1

I hope not.  Lower interest rates promotes more lending, and under our fractional reserve banking system, ruled over by the Federal Reserve Bank, more lending results in more money flowing into the system.  Too much money, chasing the same amount of goods, is what causes inflation.  This is simple stuff, not taught in our dumbed down public education system.

Answer 2

No.

Answer 3

no i dont

Answer 4

Such stagnation is likely to cause inflation in the future, what with the rise in energy prices.  Lowering the rate is unlikely, as the rates are unusually low as it is, as it will risk further inflation.  It will only be lowered if inflation can be tamed and there is a lack of investment serious enough to remedy such an action.