With inflation causing food prices and other commodities to go up as much as 20 to 30% in the past quarter the Fed has decided to keep rates at the insanely low 2.25% with some speculation that the October meeting may see increased rates.

The markets seem to be unaffected by the announcement however many industry watchers have been making the point that lowering rates improves the economy  but they do not explain how this works.

Loans from the government are provided …