How does the Fed change interest rates?

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How does the Fed change interest rates?

2006-11-25 13:31:06 · 3 answers · asked by youthebest 2 in Social Science ➔ Economics

3 answers

The Fed members vote on deciding whether to raise interest, this is done to control inflation (i.e. an increase in prices of goods in a country)

2006-11-25 19:35:57 · answer #1 · answered by Lindelani Z 1 · 0⤊ 0⤋

They buy/sell in the overnight market for funds, used by banks and other financial institutions, to keep the interest rate ( Fed funds rate) at or near the target value.

2006-11-26 20:30:59 · answer #2 · answered by meg 7 · 0⤊ 0⤋

They have a meeting and make a judgment on weather or not to intrest rates.

2006-11-25 21:36:08 · answer #3 · answered by Anonymous · 0⤊ 0⤋