Grand Canyon Financial Institutions and Interest Rates Case Paper

Someindividuals suggest thatan increase in wages can be associated with an increase ininterest rates.Apparently, this idea shows the tendency that the financialinstitutions would be committed to take part in the efforts toincrease wages. Others argue that there is no any historicalevidence that the financial institutions would be worriedabout wage increase. They also raise some important questions suchas: How on earth would an interest rate to a proportion of above4% would be allowed to exit in the first place? Who is themajor influential entity to propagate the belief thatany interest ratebelow 4% would be considered historically low, as if banks are created to amass incomemore than anybody? Where would the logic rest? The Fed is nowdetermining interest rates in a fashion that facilitate conditionsfor the economy to take its proper course. So, upon properrecovery, would it mean the financial institutions could have thelegitimacy to adjust the rate according to the public interest?How would you address these questions, which have been forwardedto all members of the course. 200 words. No title page needed.