New short!
YouTube link ⬇️
https://youtube.com/shorts/IFghqGSTHQ4
Does the Federal Reserve really control interest rates? In this video, we break down why inflation sets interest rates—not the Fed. While the Fed can lower the Federal Funds Rate, doing so may fuel prices rising across the economy, causing inflation to increase and pushing lenders to demand higher yields in order to earn a real return above the inflation rate.
We also discuss how this dynamic could impact future Federal Reserve policy under figures like Kevin Warsh, and why understanding the relationship between inflation, lending, and the Federal Funds Rate is critical for investors, savers, and anyone watching the economy. If inflation keeps rising, interest rates may stay elevated regardless of what the Fed wants.
#shorts #FederalReserve #Inflation #InterestRates #MacroEconomics
YouTube link ⬇️
https://youtube.com/shorts/IFghqGSTHQ4
Does the Federal Reserve really control interest rates? In this video, we break down why inflation sets interest rates—not the Fed. While the Fed can lower the Federal Funds Rate, doing so may fuel prices rising across the economy, causing inflation to increase and pushing lenders to demand higher yields in order to earn a real return above the inflation rate.
We also discuss how this dynamic could impact future Federal Reserve policy under figures like Kevin Warsh, and why understanding the relationship between inflation, lending, and the Federal Funds Rate is critical for investors, savers, and anyone watching the economy. If inflation keeps rising, interest rates may stay elevated regardless of what the Fed wants.
#shorts #FederalReserve #Inflation #InterestRates #MacroEconomics