What factors affect the interest rate the Federal Reserve sets?
Posted by admin | Under Federal Reserve Sunday Nov 23, 2008I am curious how the Federal Reserve comes up with the interest rates. What factors do they consider? Thanks in advance.
It really comes down to two things:
1) is inflation under control
2) is there excessive capacity in the economy
You can read the minutes from the Fed meetings for exactly what sort of things they considered for any particular meeting
http://www.federalreserve.gov/fomc/#calendars
It really comes down to two things:
1) is inflation under control
2) is there excessive capacity in the economy
You can read the minutes from the Fed meetings for exactly what sort of things they considered for any particular meeting
http://www.federalreserve.gov/fomc/#calendars
References :