Price-Stability and Price-Stability Expectations and (or at) Full-Employment...

The Fed (US) rate hikes are likely to slowdown inflation and growth rate which it would itself correct by lowering the interest rates in the future… In a way the Fed itself is creating booms and busts, but inflation and inflation expectations has changed the model a lot, now, instead of higher inflation and inflation expectations we have lower inflation and inflation expectations which has changed the interest rate and interest rate expectations i.e. lower interest rate and interest rate expectations, both long-run and short-run interest rate expectations, whenever money-supply is increased it increases expected inflation that decides the interest rates. But, the Fed is reinforcing inflation and inflation expectation to increase spending, consumption and investment which has not worked as was supposed to and has also increased savings due to higher inflation expectations, higher inflation and inflation expectations have actually reduced spending due to low real wages and wage expectations and lower real interest rate and real interest rate expectations have also delayed investment. However, lower oil prices have increased real wages and spending evident in the months low oil prices, it increased savings of the average household and spending too. Lower and controlled price and price expectations would increase real wages and real interest rate and expectations, and lower nominal interest rates and expectations would help increase spending, consumption and investment and savings, all… Lower nominal interest rate or borrowing cost due to lower inflation would help achieve full employment and PRICE-STABILITY and at full employment the Fed may try to stabilize the price-level and price-level expectations, and increase real wage and wage expectation and demand, exports, too, and growth and expectations and higher real interest rate and real interest rate expectations because of lower  prices would also help increase investment because it would be cheap to invest now and it would not be delayed with the help of the neutral monetary-policy… It would help the economy to achieve the potential growth rate at 3% sustainable over a period of time with price stability and price stability expectations and (/or at) full-employment…