I am unclear

So what event will cause the govt to raise rates to at a minimum 1 percent from .5 and while they are at it why not set it at 0. Who cares? What is this mickey mouse monopoly money created and lent and consumer borrowing and spending joke economy and society we got here in north am....

Official response from submitted

FED fears that all the new money it pumped into the economy to offset the massive 2008 crisis and its aftermath (that the bottom 90% have still not recovered from) might start running after hard assets (land, real estate, gold, commodities, etc.) and so drive up prices (i.e. a massive inflation). FED fears it might be hard to stop that once it got going. So best policy is to raise rates now to slow economy and thus hopefully dissuade people from borrowing to bid-up prices still more. Its a long shot policy, but the FED's record in predicting or solving the 2008 crisis is awful so why imagine it can see and act well now? System is careening from one crisis and "policy" to another as it spirals downward. Hence the votes for Brexit and Trump as people seek to escape a declining system or magically put it into reverse. Neither will happen. The only real solution is system change and that still scares folks.

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