now you should have a clear mental model of how the Federal Reserve sets the interest rates in the market a target range is defined, and then several different interest rates are set explicitly to steer the real interest rate into that target range

Illya Gerasymchuk 2025-07-31 09:56

think of these 4 rates as defining a corridor with an upper and a lower bound - currently 4.25% and 4.50% the average market interest rate will sit somewhere in between