“By lowering interest rates US consumers are able to make the household purchases, buy homes etc.”
Not if they have a huge debt overhang and/or no job. We need tons of new investments here, right now, and we also need to ditch the additiction to consumption as a solution to all problems. That is what has gotten into this huge mess to were we cannot pay our bills.
The present problem is Obama’s record spending- the $1T shovel-ready job that went nowhere and the public sector’s bloated costs caused primarily by unions to say nothing of the entitlement programs. If people don’t spend (invest) on goods and services, the economy will go into yet another recession. I think the Feds were smart- just this time, although global forces may alter the best laid plans.