What determines the Federal Reserve interest rate?

Answer The Federal Reserve interest rate, commonly called the federal funds rate, is a key short-term interest rate. A change in the rate influences lending rates, the dollar's value, employment and the p... Read More »

Top Q&A For: What determines the Federal Reserve interest rate

When does the Federal Reserve meet for the interest rate?

The Federal Open Market Committee (FOMC) has eight regularly scheduled meetings during the calendar year. The FOMC is made up of 12 members, including the seven members of the Board of Governors o... Read More »

What interest rate determines mortgage rates?

The rate at which mortgage backed securities (investments backed by real estate loans) are traded tends to determine mortgage rates. Those rates go up and down but typically trade at the same rate ... Read More »

What is the federal reserve prime rate?

The U.S. Prime Rate, sometimes referred as the Federal Reserve Prime Rate, refers to the lowest average interest rate that U.S. banks charge their best customers to borrow money. It is an index of... Read More »

How Does the Federal Reserve Set Interest Rates?

The Federal Reserve Board (Fed) is the central banking authority in the United States. In existence since the Federal Reserve Act of 1913 was passed by Congress, the Federal Reserve was created as ... Read More »