THE SCARY SIDE OF LOW RATES.

This article discusses the economic risks of a U.S. Federal Reserve Board policy to reduce interest rates. A stock market runup created by low rates could falter if the economy fails to expand. Banks face a narrowing spread between costs of borrowing and costs of lending. Cheap money could trigger inflation if the economic recovery is fast. Low rates prolong the life of failing businesses. INSET: A Double-Edged Sword?.