Consumers are so demoralized by inflation and high rates they've given up on saving for the American Dream and are spending money instead, economist says - eviltoast
"This positive spending is not a reflection of some sort of internalized secret sense of confidence that consumers have."
  • Mubelotix@jlai.lu
    1·
    5 months ago

    Not really. It’s to give an incentive to keep using the currency. Without this a lot of people would short the US dollar

    • HubertManne@kbin.social
      2·
      5 months ago

      way I always heard it is to fight inflation they increase interest which is supposed to encourage people to save the money rather than spend it thus lowering inflationary pressures in addition to interest capturing dollars that become unavailable for purchasing.