Federal Reserve And Interest Rates Essay

1092 Words Oct 4th, 2015 null Page
Federal Reserve and Interest Rates
No one ever thought or wanted the interest rates to increase, in fact people wonder why the federal reserve are thinking about raising rates right now. One such expert, economist Paul Krugman, wrote “The Rage of the Bankers,” published in 2015 on The New York Times and he argues that the Federal Reserve decision to not raise the interest rate was the correct one despite it negatively affecting bankers and angering them because of their greed and hunger for money. Krugman targets business men and people who follow the economy in general, he begins building his credibility by stating personal facts and information that he knows from his expertise in economics, and successfully employing ethos by citing other experts on this matter. However, he lacks the use of emotional appeal by not showing us how people feel in regards to interest rates going up or down, which does not affect his argument. Despite not using pathos Krugman creates an effective argument because of his successful use of ethos and logos, displaying why interest rates should stay low even though it affects bankers negatively.
In his article, Krugman first sets the stage by talking about the financial industry’s response in regards to the Federal Reserve’s decision on interest rates, and he outlines how the feds speak frequently to bankers and talks about the bankers’ anger from losing money due to low interest rates. Krugman continues by talking about the basic principles of…

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