suppose the Federal Reserve Bank unexpectedly raises in the United States.?
147608
The flow of funds from other nations enables U.S. firms to finance more investments in capital goods, but it also creates concerns. For example, in order for foreigners to invest in U.S. savings accounts and U.S. government or corporate bonds, they must have dollars. As they demand dollars for these investments, the price of the dollar in terms of other nations’ currencies rises. When the price of the dollar is rising, people in other countries who want to buy U.S. exports will have to pay more for them. That means they will buy fewer goods and services produced in the United States, which will hurt U.S. export industries. This happened in the early 1980s, when U.S. companies such as Caterpillar, which makes large engines and industrial equipment, saw the sales of their products to their international customers plummet. The higher value of the dollar also makes it cheaper for U.S. citizens to import products from other nations. Imports will rise, leading to a larger deficit (or smaller surplus) in the U.S. balance of trade, the amount of exports compared to imports.\n\nForeign investment has other effects on the U.S. economy. Eventually the money borrowed must be repaid. How those repayments will affect the U.S. economy will depend on how the borrowed money is invested. If the money borrowed from foreign individuals and companies is put into capital projects that increase levels of output and income in the United States, repayments can be made without any decrease in U.S. living standards. Otherwise, U.S. living standards will decline as goods and services are sent overseas to repay the loans. The concern is that instead of using foreign funds for additional investments in capital goods, today these funds are simply making it possible for U.S. consumers and government agencies to spend more on consumption goods and social services, which will not increase output and living standards.\n\nIn the early history of the United States, many U.S. capital projects were financed by people in Britain, France, and other nations that were then the wealthiest countries in the world. These loans helped the fledgling U.S. economy to grow and were paid off without lowering the U.S. standard of living. It is not clear that current U.S. borrowing from foreign nations will turn out as well and will be used to invest in capital projects, now that the United States, with the largest and wealthiest economy in the world, faces a low national savings rate.
402044
They adjust the rates with inflation.  The measure depends, but you could take a look at their prospectus.  But there's probably a cap, so if inflation goes up 100% tomorrow, your TIPs won't follow that much.
777146
Prime rate was 7% on 11/05 and 8.25% on 11/06.  The reason why they go up is because of the Fed wants inflation to remain below 3%.  Too much inflation hurts everyone because prices increase rapidly.
773781
it already is.\nif rounded to the nearest dollar (or whatever currency you're using)\nit is 819
504383
Decreasing interest rates can actually spur inflation rather than curb it. That is why the Fed keeps raising interest rates.
158495
Basically adjust for inflation or deflation in the money to compare the increases in waves earned from one year to another
1052051
I think high asset prices and commodity prices are here to stay for some more time. Investors must deal with this. There is no doubt that this huge run up in prices was partly because of leverages potions built up by investors and partly because of speculation. \n\nYet I think the Federal Banks of respective country should leave the market and economy to find its own ways to determine demand and supply rather than artificially managing the float.
1072549
i hope not.  Because ALL the people in the US are contributing to the economy.  Just think of the monetary implications it would have on the stock market and economy.   It scares me
80754
There would be a frenzy.  Look at how people are going after meaningless points, me included.  Just imagine what offering  money would do to us.
1002836
We have been doing this since we de-coupled the dollar from gold in 1971.  Actually, to be accurate, the private bank called the Federal Reserve has been doing this.  When they set interest rates low, more dollars are borrowed, meaning more dollars are needed to be put in the system, so they order it up from the Treasury and print away.\n\nIf you compare the price of precious metals and real estate, two items that have fixed "value" unless something big and artificial happens to them, then you will notice that they have increased in value almost 1.5x since Bush took office.  We have had inflation of nearly 50% in the last 4-5 years.  The Fed stopped making public knowledge the M3 indicator two months ago, which is the number of dollars in circulation in the world.  This was another trick to curb inflation...if nobody knows how many dollars there are, they can't adjust the rate of exchange based on any hard number anymore.
285669
Most speculation is that the Federal Reserve will raise interest rates one or two more times.  This is the amount banks charge other banks to borrow money.\n\nThe bond market tends to be more liquid and more variable about what rates are and react to changes in the economy much faster.  It tends to be unpredictable so I can't answer where it is going.  Lately interest rates have been going up.\n\nAnother answer that says as long as the US is spending more money than it receives, interest rates will rise, is also largely true.
266505
It depends on the time value of money, and commodity prices over time.  The net increase in commodity value over time would have to be higher than the value of the commodity being sold now and the money invested over time.
105457
Say inflation is constant at 5% per year and you have something worth x.  \n\nOne year later, it is worth x*1.05\nThe next year, it is worth x*1.05*1.05\nThe third year, it is worth x*1.05*1.05*1.05\n\nIn general, for year n, it is worth x * 1.05^n\n\nSo, it is growing exponentially.
313562
the answer to this is "probably" Mortgage rates are helped by a friendly Fed and the Federal Reserve is less likely to meddle in politics by doing any changing during an election cycle.  Better yet are the chances of no rate changes, however, due to the negative bend the Fed has been on for almost two years now, even a neutral stance would be great for all of us!
417600
March 28.  They raised the fed funds rate by 25 basis points.
336767
I would "recall" all debts owed to the US.Inflation would be erased.
747318
well,\n\nwhen will the pay go up?...\n\nif it isnt soon, then i would leave...