The chart shows that for, most of these periods, interest rates paid by Indigenous businesses on their loans from AFIs did not fall as much as either the Bank of Canada’s policy interest rate or the prime rate charged by banks to their preferred customers.
Depressed wages mean that a family’s mortgage payment consumes a larger fraction of the family’s income than they expected when they took out the loan. That unexpectedly high mortgage payment harms the family, and it’s a harm that the FOMC can prevent by achieving the inflation rate that it targeted.