If the Feds decide to keep the interest rate high this drives people to keep their money and save it instead of buying things with it. If the Feds decide to lower the interest rate this causes people to buy things like houses and cars. If people have more money in their pocket, they are more likely to spend it than save it. If people are spending more money, then it stimulates the economy allowing businesses to hire more people or keep the people they already have employed. If the interest rate is high then people won’t have the money in their pockets or they are less likely to spend the money they already have, causing unemployment rates to go up. If people aren’t buying things to stimulate the economy, then businesses will reduce production causing them to lay people
If the Feds decide to keep the interest rate high this drives people to keep their money and save it instead of buying things with it. If the Feds decide to lower the interest rate this causes people to buy things like houses and cars. If people have more money in their pocket, they are more likely to spend it than save it. If people are spending more money, then it stimulates the economy allowing businesses to hire more people or keep the people they already have employed. If the interest rate is high then people won’t have the money in their pockets or they are less likely to spend the money they already have, causing unemployment rates to go up. If people aren’t buying things to stimulate the economy, then businesses will reduce production causing them to lay people