联邦基金利率成为美国金融市场的中央利率(the central interest rate),其波动影响到诸如优惠贷款利率(prime rate,the rate banks charge their customers with higher credit ratings)。此外,联邦基金利率还间接地影响到诸如抵押贷款(mortgages)利率、借贷利率、存款利率等更长期限的利率。这些利率对消费者财富和信息有非常...
The more central bankers lower the fed funds rate, the more downward pressure it puts on interest rates for mortgages, credit cards, auto loans, and other credit, encouraging borrowing and spending by businesses and individuals. Fed officials must balance the need to boost the economy against the...
Its main monetary policy tool is the federal funds rate, which is the interest rate that banks charge one another for short-term loans. Although there's no such thing as "federal mortgage rates," the federal funds rate influences interest rates for longer-term loans, including mortgages. The...
In both instances, Fed purchases of securities increased their price, lowering yields, at moments of credit market crisis. The Fed encouraged banks to fund mortgages at lower interest rates by buying mortgage-backed securities and keeping their yields low.1213 Conversely, the tightening of monetary ...
Consider the 2000s housing bubble. To oversimplify, low interest rates, particularly onadjustable-rate mortgagesto borrowers with weak credit (those subprime loans you keep hearing about), made mortgage payments cheaper so buyers couldafford to spend more on houses. That artificially inflated home pri...
But if inflation continued to cool — or if unemployment rose unexpectedly — Powell said the Fed would likely be able to reduce its benchmark rate. Cuts would, over time, bring down the cost of mortgages, auto loans, and other consumer and business borrowing. Those comments were...
At its September meeting, the Federal Open Market Committee, decided to reduce the target range of its widely impactful federal funds rate. Changes to the Fed's interest rate can influence the cost of loan products such as mortgages and the value ofcash, bonds and stocks. ...
He added, "Overall, we're expecting a whole percentage point this year and another percentage point next year, so that's going to lower interest rates on auto loans, mortgages, credit cards, et cetera." Analysts with Capital Economics predicted the Fed would drop its benchmark rate by...
Mortgages:If the Fed lowers interest rates, homeowners with an adjustable-rate mortgage may experience a rate reduction since the rates for this type of mortgage typically track with the prime rate, which, in turn, is influenced by the federal funds rate. Of course, your interest rate is lock...
Mortgages:If the Fed lowers interest rates, homeowners with an adjustable-rate mortgage may experience a rate reduction since the rates for this type of mortgage typically track with the prime rate, which, in turn, is influenced by the federal funds rate. Of course, your interest rate is lock...