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He told them that changes need to be made to help the economic downfall in the world. Since the oil prices are slightly going down, rates should as well be going down. They need to remain consistent. The lowering the rates mean basically to lower the price for borrowing money. More people will borrow money if the rates are lower.
The fed funds rate is at 2.0% now. A year ago the rate was at 5.25%. A much bigger percentile when it comes to large amounts of money. So as you can see it has been decreasing, and they are now considering decreasing it more. This economic problem is not just happening in the United States...
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Common topics in this essay:
- The Federal Reserve And Its Role In The Global Economy
- Alan Greenspan, Chairman Of The Federal Reserve Board:
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