Vick,
all true, you are NOT wrong in your assesment,
but what you don't put in concideration is inflation and it's preasures on the economy.
also...Fed likes to use interest rates as a safety valve, meaning:
it likes to stimulate economy when signs of recession appear and slow down economy when signs of inflation appear.
now imagine the money rain falls with valve FULLY open and..economy stil takes down turn for various reasons like...aging, high price of oil, etc..
Fed can't open the valve more, the valve which is open already at full.
when interest rates are higher,
fed has FLEXIBILITY and this is I beleive is what Alex was reffering to
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