US Federal Reserve

By reviewing the Federal Reserve website and/or other relevant resources, refer to the latest 2 changes to the discount rate and  federal funds rate target made by the U.S. Federal Reserve and discuss the following:

• How did the stock market indices react to these changes?
• How did long-term U.S. Treasury bond yields react to these changes?
• What happens to borrowers, savers, investors, and bank profits inside and outside the United States as these rates change?

Deliverable Length:  600–800 words

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The US Federal Reserve can be described as the central bank of U.S.A that was created to control the financial crisis that faced the country. The Federal Reserve has over the years been supervising and regulating banks to help maintain financial stability of the country (Axilrod, 2013). This reserve usually consists of a seven-member board of directors who make decisions pertaining financial matters of the country and also determining the national monetary policy. The Federal Reserve also determines the discount rates and federal fund rates of banks.

The discount rate is the interest rate charged on banks and financial institutions on loans they borrow from the Federal Reserve…..

APA

715 words