The Fed And Interest Rates

The Fed And Interest Rates Dave Pettit of The Wall Street ledger writes a daily column that appears inside the first scamp of the journals Money & Investment section. If the headlines of Mr. Pettits daily column be any accurate record of economic concerns and current issues in the business world, the late hebdomads of March and the early weeks of April in 1994 were intensely concerned with interest rates. To quote, "Industrials Edge Up 4.32 Points Amid Caution on Interest Rates," and "Industrials Track On 13.53 Points Despite Interest-Rate Concerns." Why such(prenominal) a concern with interest rates?

A week before, in the last week of March, the Fed had pushed up the short-run rates. This being the first increase in almost tail phoebe bird years, it caused quite a stir. When the Fed decides the economy is growing at too quick a pace, or inflation is acquiring out of hand, it can take actions to slow spending and modify the money supply. This corresponding with the mon...If you want to get a satisfactory essay, order it on our website: OrderCustomPaper.com

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