Thank you for all your replies. I have a better understanding of what interest rates do to the economy.
The reason I asked the question before is when I looked under the Econoday economic calendar, and clicked on "why investors care" it said:
http://fidweek.econoday.com/reports/...tors_care.html
The level of interest rates affects the economy. Higher interest rates tend to slow economic activity; lower interest rates stimulate economic activity. Either way, interest rates influence the sales environment. In the consumer sector, few homes or cars will be purchased when interest rates rise. Furthermore, interest rate costs are a significant factor for many businesses, particularly for companies with high debt loads or who have to finance high inventory levels. This interest cost has a direct impact on corporate profits. The bottom line is that higher interest rates are bearish for the financial markets, while lower interest rates are bullish.
Why would they state the above knowing it's not the truth?
Thank you,
olimits7