Why does the Fed cut interest rates?

Answer The Federal Reserve System--the "Fed," for short--uses interest rate reductions to stimulate economic activity. The Fed's influence over interest rates is one of its most powerful tools.The FedThe ... Read More »

Top Q&A For: Why does the Fed cut interest rates

How low will interest rates drop?

On One Hand: Conventional Rates May Have Already Reached A LowA Federal Reserve program has helped to keep interest rates low--about 5 percent for a 30-year conventional loan as of 2010. However, t... Read More »

What happens when the Fed raises interest rates?

The Federal Reserve System was created by Congress in 1913 to regulate U.S. Commerce. Perhaps its most important duty is setting the Prime Rate. This is the level of interest banks charge each oth... Read More »

How Are Mortgage Interest Rates Set?

Mortgage rates are set through the daily interaction of key economic factors and not one particular bank or government agency. These factors reflect the changing conditions in the economy and affec... Read More »

The Best Interest Rates for a Loan?

Credit is what you are given, and debt is what you will carry. The latter is always heavier than the former. The weight of that burden is determined significantly by the interest rate attached to a... Read More »