Examines interest rates on 10-year U.S. Treasury bonds in December 2001. Rise in interest rates despite efforts of U.S. Federal Reserve Chairman Alan Greenspan to keep rates low; Fears that the rising rate could have an adverse effect on economic conditions in the U.S.; Argument that ...
Of course, banks can’t charge each other a “range.” They typically settle the interest rate at the midpoint of the Fed’s target, though it tends to fluctuate. Known as the “effective federal funds rate,” this rate is influenced by market factors of supply and demand as well as t...
So each time the Fed changes the interest rates banks charge each other, even if it’s just a little bit, it has a massive ripple effect on the rest of the economy. That’s why the committee has to take current economic conditions into account. And those affect whether they raise or l...
However, tides shifted as inflation soared and the Fed began hiking interest rates to get price growth back in check. With the costs of personal loans rising, demand from borrowers waned. Meanwhile, the investors who had been buying that type of debt from lenders pulled back heavily,...
An Economic Collapse Isn't the Biggest Fear Your initial fear about the Fed cutting interest rates might be that they see the economy is inworse shape than the public realizes. The Governors of the Federal Reserve can't openly say they see significant weakness, or they risk sparking panic an...
So, inflation has been moving in the wrong direction of late, causing the Fed to be cautious about cutting rates. Fed slows the pace of quantitative tightening Interestingly, while people have been looking for the Fed to cut interest rates, it has actually been making a subtle move to ...
While the fed funds rate doesn’t directly change interest rates on forms of consumer debt, such as mortgages, car loans, and credit cards, it can influence them. Because large loans, such as mortgages, are typically paid back over many years, even a small difference in your interest rate...
On days the Fed cuts interest rates, the probability the DJIA will go up is 90%. What is the probability that tomorrow the Fed will cut interest rates or the DJIA will go up? A. 0.33.B. 0.95.C. 0.72. 正确答案:C 分享到: 答案解析: This requires the addition formula. From the ...
As mortgage rates keep rising, why isn't the Fed cutting rates by even more? From CNN's David Goldman A for sale sign hangs in front of a townhouse in the Park Slope neighborhood in the borough of Brooklyn in New York on October 10. Peter Morgan/AP As the Fed cuts rates, you’...
Since it is expected that Fed will cut interest rate again, there is no doubt ___ the company will make the decision on raising the price of crude oil. [ ] A. why B. that C. whether D. when 相关知识点: 试题来源: 解析 答案:B 解析: There is no doubt…后面应接由that...