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59. How the Fed Changes Interest Rates

Filed Under Home Loans 

InformedTrades


www.informedtrades.com A lesson on open market operations and how the federal reserve increases and decreases the money supply in order to move interest rates and what this means for traders of the stock, futures, and foreign exchange markets. In our last lesson we looked at the structure of the Federal Reserve and the components of the FOMC, the portion responsible for implementing Monetary Policy. Now that we have an understanding of this, we can look further into exactly how monetary …

Comments

10 Responses to “59. How the Fed Changes Interest Rates”

  1. charlybrown1000 on February 4th, 2009 6:26 pm

    hi dave, I am interested in what you answered to that question. Could you send me that email too? thanks for everything!

  2. subprime2006 on February 5th, 2009 11:29 am

    purchase and refinance (417K or below)

    30 years fixed rate = 4.375% (cost 1 percent or 1 point to the bank or BROKER).

  3. InformedTrades on February 6th, 2009 1:12 am

    yes in general an increase in the money supply should result in rising prices. Best Regards, Dave

  4. wojtek0000 on February 7th, 2009 5:03 am

    im confused. wouldn’t an increase in the money supply cause prices to rise? more money means less purchasing power of existing money.

  5. PrettyPoeRoses on February 8th, 2009 2:05 am

    *****
    2 up
    pOe

  6. InformedTrades on February 9th, 2009 5:22 pm

    Hi ndnbikerguy, Thanks for the comment I am glad you liked it. I don’t respond to questions via email however there is a free ask/answer question section which you can find in the discussion forum at InformedTrades. If you would like to post there I will be happy to respond and you should get some good input from others as well. Best Regards Dave

  7. ndnbikerguy on February 12th, 2009 9:13 pm

    this was absolutely excellent. I am taking AP MAcro online and im struggling because i have to teach myslef, and this video helped me alot. Thankyou.

    Is it ok if i email you if i have questions for my class?

  8. InformedTrades on February 15th, 2009 7:37 pm

    Hi Spyce921, These are great questions which show you have a good fundamental understanding of the global markets. As I am limited in space for commenting here on YouTube I am going to send you over an email with a link to some more resources that answer these questions. Best Regards, Dave

  9. spyce921 on February 17th, 2009 7:36 am

    First off thank you for your videos they are very informative and helpful. My question is when the Fed drops interest rates doesn’t this have a major impact on foreign investment in the economy? And from a monetary standpoint which is better having foreign investor loss faith in the economy or stop investing or having nationals being able to spend more? I hope my questions make sense thank you in advance

  10. lingojac on February 19th, 2009 1:16 am

    Thank you for helping me review for my macro test tomorrow :D