What Is the Fed's Interest Rate? đ
The Federal Reserve's interest rate, known as the federal funds rate, is the rate at which banks lend to each other overnight. This rate influences many other interest rates in the economy
When the Fed cuts this rate, borrowing becomes cheaper for consumers and businesses. This encourages spending and investment, potentially boosting economic growth đ”
đŒ Recent events show the stock market rising and cryptocurrencies surging after a rate cut. Lower interest rates make traditional savings less appealing, prompting investors to seek higher returns in stocks and crypto.
This increased investment demand drives up asset prices. Cheaper borrowing also supports business expansion, further enhancing stock market performance đ
