Why Should I Be Interested In All This Talk About The Fed?
Posted by Team HFM on June 02, 2016
8 Ways the Federal Reserve's Interest Rate Decisions Affect Your Life
Excerpted and paraphrased from an article by Katherine Reynolds Lewis on Bankrate.com
- Availability of credit
- Influencing the prices you pay
- Affecting the job market
- Putting credit card rates in motion
- Certificate of Deposit rates
- Auto loan rates
- Mortgage loan rates
- Home equity line of credit rates
Katherine Reynolds Lewis elaborates in her article:
The interest rates you pay and earn, the availability of credit and even your prospects in the job market are linked to the projections and judgments of Federal Reserve Board Chair Janet Yellen and the other members of the policymaking Federal Open Market Committee, made up of Fed board governors and reserve bank presidents.
They meet in Washington to set monetary policy, primarily by raising or lowering the Fed's target for what's called the federal funds rate.
The Fed's mission is to foster economic growth without raising inflation. "The Fed has a dual mandate. They want to have low and steady inflation and a strong labor market," says Gus Faucher, senior macroeconomist with The PNC Financial Services Group.