How does the federal reserve affect your life?
106430
At "HOUSE JOINT RESOLUTION 192? June 5, 1933 the Gold and Silver Standard of america was desolved into the federal reserve and the international monetary fund, and made it illegal to pay a debt because the federal reserve uses "notes" and a "note" is a debt, its neither taxable, wages or income... its only a negotiable bill of credit that is totally non redemable         Article 1 Section 10 of the Constitution FOR the united States of America said that: CONGRESS SHALL COIN THE MONEY AND REGULATE THE VALUE THEREOF, it has never been repealled , it has affected my life by showing me the true FRAUD it truely is
1158225
As interest rates go up, people start saving money and putting it into the bank.  This makes money worth more since people are not spending it as much (kinda like supply and demand).
952522
Inflation is a dangerous beast.  It is necessary for growth.  The nature of growth is inflation.  Too much inflation or fluctuating inflation is dangerous.  People don’t know what to expect.  Inflation impacts many things.  Let’s look at the value of a home.  If I know that my house will grow 6% each year I am happy.  I will buy a house.  If one year it grows 50% the next year it falls by 18% then I will never know if I should buy or sell or do nothing.  \n\nConstant Inflation helps people feel confident about the future and allows them to invest with more certainty.
325539
Associated costs such as wardrobe. transport, moving.\nStructure and stability of new company, room for advancement.Autonomy or how you would fit into the structure.\nHow does it affect the others in your life?\nwill it be stimulating and  interesting?\nhow will it affect you financially.what are the benefits, medical plan, retirement and so on.
1140485
It would take a whole course to give you a comprehensive response. You might consider signing up for one at a local college.\n\nMeanwhile, in a nutshell, here's what's happening at this time in the economy: The Fed is always concerned with keeping economic growth at an acceptably high level and keeping the rate of price inflation at an acceptably low level.\n\nWhen the economy gets cooking, the money supply expands (that's actually what inflation is). The business community spends more to satisfy their higher level of business activity, and consumers feel rich so they spend more.\n\nThe US economy has been on a five-year expansion. It's reaching the level where inflation is becoming a serious problem. So the Fed has been raising interest rates to try to keep growth from getting too fast. But consumers have borrowed huge, huge amounts, including in mortgages, so if the Fed "slams on the brakes" too hard by raising interest rates too much, the risk is that a severe recession or worse could set in, triggered by that mountain of debt.\n\nMeanwhile, other economies, especially China and India, have been growing at very high rates. They are gobbling up all of the commodities they can find - oil and gas, lumber, base metals, etc. That adds to inflation.\n\nWe are in the midst of a commodities boom. Mining and energy stocks have come a long way up but have a long way still to go. Many companies have done poorly for several years because they don't operate well in a higher-inflation environment (their costs go up faster than they can raise prices).\n\nThat's a lot of information in one short message. As I said, look into taking an economics course. I was a chemist once, but enrolled in business school and loved every minute of it because of the fascinating and useful things I learned.\n\nBest of success.
64719
This is a really WIDE-ranging question, and it's practically impossible to give you a good answer that's practical for use. Fed Reserve prints money, essentially, "increasing the money supply" (counterfeiting) on demand. It is private, yet govt controlled. The govt simply placed it in "private hands" so they could get away with their political sleight of hand without having to worry about the Constitution. The IMF, of which the US is a member with about 17% of the clout, loans federal reserve funny money and usurious rates, then, eventually, puts anyone small (only large companies can afford usurious rates) out of business, out of house, home, food, and everything else. Ask Jamaica. The federal govt, in taking us off the gold standard, has sentenced the US to eventual economic death.\n\nGo to the web and search for Liberty Dollar. You can trade $10 in federal funny money for real silver, and $1 for silver certificates backed by real silver. If enough of us used this, we could make the US financially solvent again, over the years.
462610
Try the World Bank of the Federal Reserve
251573
Fed impacts the economy with monetary policy through raising and lowering interest rates. The discount rate is the rate sets the interest rate for lending- and the government short term and long term bonds. \nRaising rates makes borrowing money more expensive (think of your credit card, or home loan, you want rates low because you'll borrow and spend more)- spending more fuels growth in the economy. \nHowever this needs to be balanced in order to curb inflationary pressures (where prices increase because of demand pull, or cost push). Having too much money sloshing around in the economy can create havoc in the economy because without keeping it in check, too much money will eventually lower the value of that money (think diamonds or something, the rarity creates value). \nThey have raised rates because:\n1. They are showing they are optimistic about the growth of our economy- raising rates signals they think our economy is growing, not slowing.\n2. They are also raising rates because globally, other countries are also raising rates and in order to keep attracting foreign banks/investors to hold our bonds (or debt) we need competitive rates. So if you want more info on what the foreign direct investment means, email me. Seems you're focused domestically.\n\nWhen will they maintain the existing level?\n- it depends on the growth of the economy\n- no one has a crystal ball- but if oil prices continue to increase and the fed doesn't want to lower interest rates, he could keep it steady instead of sending the signal of lowering rates (which would seem like a slowdown in the economy).\n- they will lower it if the expansion of our economy slows significantly- right now we are around 1.8% per quarter (double check- was in Wall Street Journal a couple of days ago). If the quarterly growth of GDP begins a downward spiral, then lowering interest rates will hopefully help reverse that trend (meaning fuel people to borrow and spend).\nHope this helps
559804
Cost of living, definitely.  Inflation.  Interest rates.  Unemployment rates.
392853
The interest rate on 10-year Treasuries is now 50 basis points higher than it stood at the start of the year. This rise coincided with a run-up in many commodity prices.\n\nThe market is concerned about incipient inflation but has confidence (at least no less than a month ago) that the Fed will succeed in eventually getting that inflation under control. The argument is that the Fed impacts the economy primarily through its effect on long-term real interest rates, so that the Fed will somehow have to get long-term real interest rates to rise in order to slow down the economy sufficiently to offset the incipient inflation.\n\nOver the past couple of years a few culprits have been identified as causing low long-term yields including foreign central banks managing their currencies, China & Japan, oil exporters not spending their windfall, Saudi Arabia & Russia, and pension funds moving out of stocks and into bonds to better match their long term liabilities.\n\nWith China slowly moving to a floating exchange regime, Japan ending its quantitative easing, the collapse of many middle eastern stock markets, and pension funds possibly completing their asset reallocation, current long bonds may be reflecting a drying up of demand\n\nAs the housing market continues to weaken it will have serious ramifications for the overall US economy. "The collapse of the housing bubble will throw the economy into a recession, and quite likely a severe recession. A turn in the housing market is central to our economy with a downturn in housing meaning more than 1.3 million lost jobs, bumping up the national unemployment rate by 1 percent and the unemployment rate in house-mad California by 2 percent. Those numbers don't include likely job cuts in housing-dependent businesses, such as mortgage banking, furniture and building materials. A bubble burst would mean the loss of 5 million to 6.3 million jobs. \n\nThe housing run-up has financed consumer spending, creating more than $5 trillion in bubble wealth. Consumers have used "cash-out" mortgages to pay for everything from new kitchens to college tuition. \n\nTo answer your question Yes the Federal reserve acted too late to slow current inflation and the 2007 recession.
463789
The government in macroeconomics can utlize a number of what are called monetary policies to contract or expand the money supply.  This affects deflation or inflation.  The most common one used is to change the over night lending interest rate to banks.  This is what people are talking about when they say the fed is raising interest rates.  Another thing the gov't can do is issue or buy back government bonds/bills.  This can also increase or decrease the money supply.  Finally the government can change the required reserve ratio for banks which also controls the size of the monetary supply.
1037621
There is a inverse relationship. When interest rates go up, the stock markets go down. When interest rates go down, stock market go up.\nThere is a old saying "Don't fight the Fed". When the Fed increase its interest rates twice, the stock market would fall.\nAs the interest rates rise, investor would seek safer return in T-bill, bonds, and saving account in banks.\nAs the interest rates fall, investor would to seeking higher return in Stocks rather than invest in low rates of returns in bonds.
438298
I'm sure an Econ person is way more qualified than I to answer this question but it deals with supply and demand.\n\nThe cost of lending money (as in rising interest rates) makes less people borrow it which means that there will be less people buying goods and services which keeps inflation in check.\n\nThe more it costs banks to lend money by borrowing from the federal reserve, the more they have to charge people who take out loans to recoup that costs.  This means that the price point for borrowing money is higher meaning less people will borrow money because they have to pay back more.\n\nIn the grand scheme of things, this makes business keep their prices in check and not raise them as high as they would like.
106194
If I knew the answer to that, I could become a multi-millionaire this year. The main negative for the stock market is rising interest rates as they have a negative impact on consumer spending. On the other hand rising interest rates are supporting the value of the dollar because they are attracting foreign money.  \n\nAt some point consumers will not be able to continue spending more than they make. They have been doing this for the last six or seven years. When this happens--perhaps later this year, perhaps not--the chickens will come home to roost.
857472
Nothing especially if you are married and have kids.\n\nIt's a hard life to live!
663165
If not exactly, yes they are interelated, reason being, that when Fed hikes interest rates people tend to put money in the local interest earning instruments because of low risks (Obviously) and Better&Assured returns (Due rise in interest rates) consequently the money flowing towards indian equity/capital markets, in pursuit of higher returns, gets diverted towards american money markets because of more security.\n\nThe above one is a general view, if we look in particular, the real effect comes from lowered consumption caused in the domestic markets of america, because people tend put more money in savings in pursuit of higher returns over period of time. \n\nThis fall in comsumption in the largest consumer market in the world may cause disturbances in other countries India and especially China (For whom america is the single largest for its cheap low quality goods, due openness of the  american markets) due to this corporates may take a blow and sensex falling down is just a reaction to it.\n\nI would like you to note that a hike in FED has a more Global effect than the hike in indian or any other countries rates. \n\nThis is one topic on which you can write & write & write as much as you can so i wont bore further but rather leave it to you to deduct the further consequences.
488886
Inflation essentially devalues money.\n\nDuring WWII inflation in Germany reached nearly 100% per day.  People were paid daily and they spent it all on the way home because it would be worth about half the next day.\n\nThe main way I have seen inflation controlled is by manipulating interest rates.  By raising interest it costs more to "rent" money.  This has a tendency to slow most economic activity.  A slower economy will normally reduce inflation.\n\nIf you want inflation to go up, print more money.  \n\nI was on active duty with the US Air Force during President Carter's double digit inflation period.  Inflation was around 18% and we received "cost of living raises" under 2%.  We considered ourselves Uncle Jimmy's inflation fighters.  It took five or six years to get our pay back to where it was when "run-a-way inflation" took over the economy.  I hope that sort of crap never happens again.