• Yes, the Fed should continue to raise interest rates because it reduces inflation.

    When the interest rate is low, consumers have a tendency to spend more. When consumers spend more the demand increases and this make the prices of goods skyrocket. When the interest rate increases, the consumer has a tendency to be more selective at the time to spend or borrow money, the demand decreases and the prices get lower.

  • It Beats the Alternative

    This question is tough to answer. Raising rates is the monetary equivalent of going to rehab -- so the economy would experience a withdrawl from the cheap money and cheap liquidity. Then again, the fed isn't entertaining raising rates very quickly so it's more like just PR for the fact that the economy is not pre-ordained when generally-speaking it is.

  • Let's just see how this first one goes

    This is the first interest hike the Fed has done in almost a decade due to the recession that set in around 2007. While we still haven't completely recovered, it was time to end the era of "easy money" and start the era of rebuilding the other half of the system.

  • it doesn't have positive effect

    The cost of borrowing is expected to rise, people can't expect that their savings account will start paying more than a mere fraction of 1 percent in interest.
    But maybe there is no any abrupt changes.
    This raising has only a wobbly effect on how banks and other financial institutions price certain loans and savings vehicles.

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