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 »

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 »

When did the Federal Reserve cut prime interest rates?

The Federal Reserve does not have direct control over prime interest rates, which are set by banks. The Federal Reserve conducts open market operations to change the the federal funds rate. The Fe... Read More »