How does FED (Federal funds rate) affecting global current economy
The Federal Reserve sets the federal funds rate, which is the interest rate banks charge each other for overnight loans. This rate influences other interest rates, such as prime and mortgage rates. The Federal Reserve uses the federal funds rate to influence overall economic growth and inflation. In this blog post, we'll discuss how the Federal Reserve's actions can affect the economy in the short-term and long term. We'll also look at some scenarios that could play out depending on what the Federal Reserve does with interest rates. What is the Federal Funds Rate? The interest rate that banks charge each other for overnight loans is called the Federal Funds Rate. The rate is set by the Federal Reserve, and it is used to influence the overall level of interest…