how can the FED even set market-wide rates? 🤔
Illya Gerasymchuk
how can the FED even set market-wide rates? 🤔
after all - there is no single rate that the whole market unanimously uses
different types of lending have different rates in the market, as it's a (somewhat) open market
How Does the Federal Reserve Set Interest Rates?
some think that they define a single rate - namely the overnight lending rate - i.e. the rate at which the banks lend to each other overnight
but that's not the case ❌
