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The Fed And Interest Rates
Part 1 of Paper ....the journal's Money & Investment section. If the headlines of Mr. Pettit's daily column are any accurate record of economic concerns and current issues in the business world, the late weeks of March and the early weeks of April in 1994 were intensely concerned with interest rates. To quote, "Industrials Edge Up 4.32 .... Part 2 of Paper ....ll change by the Fed affects all aspects of business, from the price level to interest rates on credit cards.
Rises and falls in the interest rate can reflect many changes in an economy. When the economy is in a recession and needs a type of stimulus package, the Fed may attempt to decrease the interest rates to encourage growth and spending in the markets. However, when inflation is increasing too quickly and the economy is gaining strength, the Fed will attempt to raise rates, as it did la.... |
Number of words: 1075 - Approximate pages: 4 |
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