Yusra3
VIP Contributor
The Federal Reserve is the central bank of the United States. It was established in 1913 and has been operating ever since. The Federal Reserve's main function is to manage the nation's money supply, which it does primarily by setting interest rates.
The Federal Reserve sets its interest rates based on economic conditions and inflation concerns. The Fed wants to keep inflation low, so it raises interest rates when there is too much money chasing too few goods and vice versa when there are not enough goods available to meet demand at an acceptable price level.
The Federal Reserve also sets these rates based on how it thinks the economy will perform over time. If they think things are about to get worse, then they raise interest rates so people have less money to invest in risky investments like stocks or bonds that could go up or down in value quickly depending on whether or not they're good investments (like gold). If they think things are about to get better, then they lower interest rates so people have more money available for spending or saving on other things like houses or cars!
How does this affect me?
If you've ever had a credit card, it's likely that you've been charged an interest rate at some point in time. This means that your debt gets bigger over time because you have to pay back more than what was originally borrowed. The Federal Reserve controls these rates so that they don't go up too much or too fast. they want people to be able to afford their debts. This means there will be times when interest rates go down but then go back up again later on down the line; this is normal behavior for any type of loan or debt instrument!
The Federal Reserve sets its interest rates based on economic conditions and inflation concerns. The Fed wants to keep inflation low, so it raises interest rates when there is too much money chasing too few goods and vice versa when there are not enough goods available to meet demand at an acceptable price level.
The Federal Reserve also sets these rates based on how it thinks the economy will perform over time. If they think things are about to get worse, then they raise interest rates so people have less money to invest in risky investments like stocks or bonds that could go up or down in value quickly depending on whether or not they're good investments (like gold). If they think things are about to get better, then they lower interest rates so people have more money available for spending or saving on other things like houses or cars!
How does this affect me?
If you've ever had a credit card, it's likely that you've been charged an interest rate at some point in time. This means that your debt gets bigger over time because you have to pay back more than what was originally borrowed. The Federal Reserve controls these rates so that they don't go up too much or too fast. they want people to be able to afford their debts. This means there will be times when interest rates go down but then go back up again later on down the line; this is normal behavior for any type of loan or debt instrument!
