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Raising Interest Rates could have an Adverse Effect on Federal and State Budgets


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Raising Interest Rates could have an Adverse Effect on Federal and State Budgets

WASHINGTON - Last week, the BLS announced that unemployment had fallen to 5.5 percent. Many analysts and policymakers questioned whether this would spur the Federal Reserve raise interest rates as has long been speculated. A new report from the Center for Economic and Policy Research (CEPR) points out, though, that if the Fed were to raise rates and keep unemployment from falling further, it would have a substantially negative impact on the budget.

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