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by kyrra 1253 days ago
See the Fed's own theory on this topic: https://www.federalreserve.gov/faqs/money_12856.htm

> For example, when interest rates go down, it becomes cheaper to borrow, so households are more willing to buy goods and services, and businesses are in a better position to purchase items to expand their businesses, such as property and equipment. Businesses can also hire more workers, influencing employment. And the stronger demand for goods and services may push wages and other costs higher, influencing inflation.