What Is The Feds Discount Rate And Does It Affect Housing?
The Federal Reserve rate cut of last month failed to stop the bleeding in the U.S. stock market. That’s because the Fed cut the “discount” rate, not the federal funds interest rate. What’s the difference and how will housing be impacted? You won’t find the answer on financial news sites. They talk in jargon. So here’s a little lesson in American federal money flow management. The Federal Reserve is the bank of the federal government and the guardian of the U.S. economy, and as such, regulates monetary and credit policies such as buying and selling securities, setting the cost of credit (interest rates,) how much money is available to banks for borrowing, and how fast and at what rates the money has to be repaid. The idea behind the Federal Reserve is to keep things running smoothly, so banks that are members of the Fed are federally insured, which is reassuring to depositors like you and me. To accomplish the flow of money, The Fed operates 12 regional banks, who monitor the economy an
Related Questions
- I am on Housing Benefit and have been offered a new property, but my tenancy will begin before my old tenancy ends. How will that affect my Benefit?
- How would Fed rate cuts in response to slower economic growth affect the housing market and refinancings?
- What Is The Feds Discount Rate And Does It Affect Housing?
