Keeping interest rates low will only further suffocate the US economy by exacerbating inflation. - Inspired by Richard Fisher, President of the Federal Reserve Bank of Dallas

Earlier this year, the Fed slashed interest rates to 2%, a figure that remained unchanged after a recent meeting. Analysts expect that the rate will not rise until some time next year.

While the Fed claims to have reduced rates to aid the floundering US housing sector, many economists believe that this will only further cripple the economy.

According to Richard Fisher, President of the Federal Reserve Bank of Dallas, the move will backfire by fueling inflation, which poses a greater threat to the economy than slowing economic growth and unstable markets.

Former IMF chief economist Kenneth Rogoff shares the same view: "Cutting interest rates is going to lead to a lot of inflation in the next few years in the United States," he said. He added that the Fed was wrong to cut rates so "dramatically."