Interest rates don't matter? Federal Reserve paper says so

The Marriner S. Eccles Federal Reserve building stands in Washington, D.C.
Andrew Harrer | Bloobmerg | Getty Images

The idea that rising interest rates lead to a decline in investment spending is at the core of a lot of traditional investment theory, monetary policy and fears about what will happen when the Federal Reserve withdraws its accommodative monetary stance.

And it may just be wrong.

A new working paper by two Federal Reserve economists finds that business leaders don't think that interest rates matter very much, all other things being equal.