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re: Powell: Fed can maintain higher rates for "as long as needed"
Posted on 4/18/24 at 2:09 pm to Loubacca
Posted on 4/18/24 at 2:09 pm to Loubacca
quote:
The interest rate should not be regulated by the FED but should be based on supply and demand of money available to lend.
The Fed does not directly control interest rates. They affect it indirectly by purchasing or selling securities to banks in order to increase or decrease the money supply. This eventually leads to the interest rates changing because of the change in the money supply that’s available to lend.
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