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The Federal Reserve increased interest rates to control inflation and encourage saving and investment.

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5mo ago

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Related Questions

Why did the Federal Reserve raise interest rates?

The Federal Reserve raised interest rates to control inflation and encourage saving and investment.


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/


When the federal reserve board lowers interest rates it most likely attempting to?

lower interest rates.


Who sets the interest rates in the US.?

The Federal Reserve (The Fed)


What would happen if the U.S. Federal Reserve Bank were to increase the legal reserve ratio?

You would expect higer interest rates, a contracted GDP and depreciation of the dollar


Who sets national interest rates in the US?

The Federal Reserve (The Fed)


How are bond prices affected when the Federal Reserve lowers the interest rate?

When the Federal Reserve lowers interest rates, the value of outstanding bonds will increase. The increase in the value of bonds is due to the market price of the bonds adjusting to reflect the lower interest rates available on new bonds. Investors with bond holdings enjoy an increase in the value of their holdings when the Fed cuts rates. However, new investors in bonds will receive a lower rate of interest and if the Fed later raises rates, bond investors will experience a decrease in the market value of their bonds.


Why does the Federal Reserve cut interest rates?

banking economics us government


What can the Federal Reserve Bank of New York do to control short term interest rates?

To control short term interest rates, the Federal Reserve Bank of New York should establish a floor on money market rates while improving monetary policy.


Did the federal reserve keep its interest rates low or high through out the 1920s?

low


How did the Federal Reserve's higher interest rates in the 1930s complicate the great depression?

;lsh


How can the Federal Reserve effectively target a higher interest rate?

The Federal Reserve can effectively target a higher interest rate by adjusting the federal funds rate, which influences borrowing costs for banks and ultimately affects interest rates for consumers and businesses. By increasing the federal funds rate, the Fed can encourage higher interest rates in the broader economy.