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Slack.com slash DHQ. This is CBS Eye on the World. Here's John Batchler.

The Federal Reserve much in the news because of interest rates. However, the Federal Reserve

also is an explanation for why we're in the fix here with the market selling at the end

of the year and the gloom that spreads across Washington across the US about this word recession.

I welcome Jim McTagg, my colleague, former Washington editor of Barrons, who's seen it all

several times, both as a broker and a journalist. Jim, you've guided me to understand the driver

of this gloom right now is the Federal Reserve being too accommodating too long, keeping

interest rates down. What did that do to the economy? What did that do to investor class?

Good evening to you.

They fed flooded the economy with easy money. That low interest rate loans. That rose down

the rates on bank savings to close to zero. That forced mom and pop and people on Main Street

looking for some return on their money into the stock and bond markets. Places where they

weren't some of them were not accustomed to being. The stock market took off because we

had all these buyers in the market. These are buyers that had no other place to go. The

fed by raising interest rates now is lifting savings rates, is lifting CD rates. It's making

it harder for companies to make a profit because they borrow and their borrowing expenses

are going up so their profits are down. In short, people are reevaluating the value of

...