Federal Reserve
By reviewing the Federal Reserve website and/or other relevant resources, refer to the latest 2 changes to the discount rate and federal funds rate target made by the U.S. Federal Reserve and discuss the following:
- How did the stock market indices react to these changes?
- How did long-term U.S. Treasury bond yields react to these changes?
- What happens to borrowers, savers, investors, and bank profits inside and outside the United States as these rates change?
Deliverable Length: 600–800 words
Answer Preview
The discount rate is the interest rate charged on banks and financial institutions on loans they borrow from the Federal Reserve. The changing of a certain discount rate is usually done by a board of directors of the Federal Reserve who consider a lot of things before deciding…
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