asked 138k views
3 votes
How does the Federal Reserve affect me, U.S. banks, and the economy?

asked
User Fjsv
by
7.0k points

1 Answer

1 vote

Answer:

The Fed uses the federal funds target rate as a means to influence economic growth. To stimulate the economy, the Fed lowers the target rate. ... Since loans are harder to get and more expensive, consumers and businesses are less likely to borrow, which slows economic growth and reels in inflation.

Step-by-step explanation:

answered
User Iman Bahrampour
by
8.1k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.