BETA
Which government bond yield do 30-year fixed mortgage rates closely track?
Chapter 1
The secret birth of the Fed
Chapter 2
The magic lever of interest rates
Chapter 3
Printing money and fighting inflation
Chapter 4
The global ripple effect of the dollar
Ch 2 · The magic lever of interest rates
sloane Turn the money crank to discover how the Federal Reserve quietly runs your wallet.
sloane Federal Reserve Interest Rates
The Fed's benchmark rate, A silent hand guiding all your costs, From loans to how much your savings grow.
sloane When the Federal Reserve raises interest rates, your savings account might finally start earning more money.
Fun Fact
Eight secret meetings: The Federal Open Market Committee meets exactly eight times a year in Washington to decide if your borrowing costs go up or down.
sloane Raising interest rates makes borrowing expensive, which slows down spending and helps lower rising prices.
Glossary
interest rate (noun)
The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage. The Federal Reserve manipulates this baseline to regulate inflation and influence American mortgage and credit card costs.
The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage. The Federal Reserve manipulates this baseline to regulate inflation and influence American mortgage and credit card costs.
Quiz
What is the name of the Federal Reserve committee that meets eight times a year to set interest rates?
Quiz
Which financial product is most likely to pay you more money when the Fed raises interest rates?
Quiz
What is the primary goal of the Fed raising interest rates when the economy is overheating?
Quiz
How many times a year does the Federal Open Market Committee regularly schedule its policy meetings?
Quiz
What happens to existing credit card debt when the Federal Reserve raises its benchmark rate?
Quiz
What is the interest rate called that commercial banks charge each other for overnight loans?
Quiz
How does raising interest rates typically affect the overall demand for goods and services?