Last week I discussed value as it relates to the recent volatility in the stock market. Some commentators have attributed price volatility to recent changes in interest rates. They have gone on to speculate about when the Federal Reserve will “raise interest rates.” I figured now would be a good time to open the subject … Continue reading Changing Interest Rates
Can the Fed actually control interest rates? And, does the fed funds rate actually have a significant influence on broader market interest rates?
The Fed funds rate is zero because banks don't have a need for reserves. Fed action has not changed that.