What are the cons of the Federal Funds rates dropping?

Question

What are the cons of the Federal Funds rates dropping?

Answer 1

A NEGATIVE consequence of A rise in interest rates is that foreigners will not be attracted to the US market and will go to which ever nation will offer higher real interest rates for their investments.

Capital flight will occur, that is foreigners will take their investments/capital out of US market and invest elsewhere pushing the US dollar lower in the short run. Therefore THe USA cannot rely on foreigner to finance portions of their increasing government debt.

A falling US interest rate means US Bonds become less attractive to financial investors in the USA and globally. Fewer investors buying American Bonds translates into a lower demand for US dollars therefore depreciating the dollar.

Answer 2

Interest rates for savers & investors drop. Lower income for them.