Other than the incentive for the federal government to accrue debt, what other problems are associated with the Fed keeping interest rates low.

What will be an ideal response?

Keeping interest rates extreme low can have negative effects on those approaching retirement. An individual who has saved for retirement with the plans to live off the interest payments generated by his/her investments may find themselves spending down their wealth due to low interest payments. On the larger scale, pension plans and retirement funds are also hurt by the low interest rates. Some institutions made agreements with workers to invest their retirement money. These funds have not earned the expected rate due to the financial crisis and low interest rates. For these reasons, it is unlikely that workers will receive the amount they were promised.