Economics · Macro
Central Banks & Interest Rates
How the Fed sets the price of money: the dual mandate, the FOMC, the fed funds target and interest on reserves, QE and QT, the Taylor rule, and how a rate decision ripples through bonds, stocks, the dollar and your mortgage.
Step 1 of 6 · Overview35 min read ·
Key idea
Prereqs: Money & banking; Bond prices & yields (Markets). Next: Inflation. Follows the Federal Reserve's own explainers, MIT 14.02 and Crash Course Economics #10.Next: 1. The Fed's job and structure