see from the chart below inflation is very volatile. It changes all the time and every since the attack on September 11 it has began to fall. I believe that once the economy relaxes a little and starts to spend more, then inflation will start to level out and become steadier.
             Interest rates are the rate charged for borrowed money. Therefore, when the Federal Reserve lowers the interest rate, more people will be willing to borrow and spend. This spending is what stimulates the economy. For the 10th time this year the Federal Reserve has cut the interest rates. As of right now interest rates for those who qualify is at 5.0%. As the chart below (MoneyCafe.com) shows the Federal Reserve has been cutting back steadily every since the beginning of the year trying to stimulate spending by consumers. I think that this is a good move by the Federal Reserve to stimulate the economy. Interest rates and the Federal Reserve Policy are closely related since usually the poli
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