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You Decide: Why did the Fed raise interest rates?
Among the powers of the
Hence, when
Influencing interest rates is one of the significant powers
The inflation rate is another matter. The inflation rate measures the percentage change in the prices of products and services that typical households buy. Usually, the rate is quoted on an annual basis. The Fed’s goal is a 2 percent or lower annual inflation rate. Recently the annual inflation rate has hovered between 3.5 percent and 4 percent, obviously well above the 2 percent goal.
One of the ways to motivate households to slow their spending is to make borrowing more expensive. Households often borrow in order to spend. Borrowing to buy a home or a vehicle is an example. Consequently, when
Using its power to impact interest rates is not uncommon for
Bottom line: Did
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