NEW YORK -- Weak consumer confidence and purchasing power are preventing the potential benefits of low interest rates from taking hold, asserts economist Andrew F. Brimmer.

"The prevailing logic says that a reduction in interest rates is supposed to stimulate economic activity," he says. In fact, the Federal Reserve followed this recipe with success in the eight business cycles between 1948 and 1982.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.