What does it mean for the FED to keep interest rates unchanged; FED101

- When the FED keeps interest rates unchanged, it usually indicates that economic conditions are stable and that the current interest rate continues to support economic growth.

- The FED uses interest rates to regulate the economy. If the water in the economy is getting extra hot, i.e. if inflation is rising rapidly, the FED usually increases interest rates. This makes borrowing more expensive, which reduces consumption and investment and thus slows down the economy.

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