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Under what economic condition might you expect the Federal Reserve to raise interest rates?
Wiki User
∙ 9y ago
The Federal Reserve will raise its interest rates once the US economy shows signs of strength. The Financial markets in the US are highly volatile and needs to ease down on their artificial fluctuations and become more steady. Currency, checking accounts, mutual funds and savings accounts are measuring sticks that affects the monetary policy. Inflation should move above 2 percent. These economic conditions play an important role.
Wiki User
∙ 9y ago
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Which of these actions of the Federal Reserve can slow economic growth?
you didn't put any choices but a sale of bonds or raising interest rates would slow economic growth.
Why do interest rates fall during a recession?
The Federal Reserve lowers interest rates during a recession in hopes to spark economic activity (aka consumer spending).
What are the factors that affect the economic growth?
Things that can affect economic growth include: interest rates, the political environment, weather and a host of other things. The Federal Reserve sets monetary policies to help combat these factors.
What happens when federal reserve raises interest rates?
If the Federal Reserve Bank of New York plans on raising interest rates at some point in the near future it will change the "fed funds" rate on overnight bank loans.
When the federal reserve board lowers interest rates it most likely attempting to?
lower interest rates.
Which of these actions of the Federal Reserve can slow economic growth?
you didn't put any choices but a sale of bonds or raising interest rates would slow economic growth.
Why do interest rates fall during a recession?
The Federal Reserve lowers interest rates during a recession in hopes to spark economic activity (aka consumer spending).
Why would the Federal Reserve Bank of New York want to control short term interest rates?
The Federal Reserve Bank of New York would want to control short term interest rates to prevent them from falling below the target amount and creating an economic decline.
Are interest rates increasing?
At this time, interest rates are not increasing. Due to economic constraints, the Federal Reserve has decided not to increase interest rates in the near term. http://money.cnn.com/news/specials/fed/
What is the business related definition for Beige Book?
The Beige Book is a report that summarizes the economic conditions. This report is produced by the Federal Reserve. The Federal Reserve uses statistics and economic data information submitted by each of the 12 Federal Reserve banks.
What causes the Federal Reserve System to earn money?
Earnings of the Federal Reserve System are primarilyderived from the interest the Federal Reserve Banks receive from their holdings of securities acquired from their open market operations along with interest from loans made to member banks.
What does Congress create to control economic activity?
The Federal Reserve
Who sets the interest rates in the US.?
The Federal Reserve (The Fed)
Who sets national interest rates in the US?
The Federal Reserve (The Fed)
The Federal reserve can cause interest on mortgages to decrease by?
taking money
What is the primary tool use by the federal reserve when it responds to economic boom and recessions?
The primary tool used by the Federal Reserve when it responds to economic boons and recessions is the buying and selling of bonds in open market operations.The buying and selling of bonds in open market operations is the primary tool used by the Federal Reserve when it responds to economic booms and recessions.
What is the primary tool used by the federal reserve when its responds to economic booms and recession?
The primary tool used by the Federal Reserve when it responds to economic boons and recessions is the buying and selling of bonds in open market operations.The buying and selling of bonds in open market operations is the primary tool used by the Federal Reserve when it responds to economic booms and recessions.
