Questions tagged [federal-reserve]
67 questions
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Why would a bank need to accept deposits from private clients if it can just borrow from the Federal Reserve?
As far as I understand, all banks can borrow money from the Central Bank (Federal Reserve in the US) and the rates are (currently) extremely low (or even negative in some cases). If that is so, why would a bank need to accept deposits from private…
JonathanReez
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Can I lend a small amount of my own money to a bank at the federal funds rate?
I have a dollar that I won't be needing tonight, and I hear that banks are in the market for short-term loans. In fact, the present Fed funds rate is higher than the interest rate on any savings account I can find. Is it possible for me to lend at…
Display Name
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Is there any way to know how much new money the US is printing?
There is a lot of talk about the Fed printing money.
Is there any way to know how much new money is being printed and when?
tucson
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What exactly is the interest rate that the Fed is going to adjust?
Lately, the financial press talks non-stop about the Fed doing this and that to the interest rate. What exactly is this interest rate that the financial press is talking about?
Why is this Fed interest rate so important given that there are so many…
curious
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Why is a coin an asset whereas a note is a liability on the Federal Reserve's balance sheet?
Can someone explain me why coins are assets and notes are liabilities for the U.S. Federal Reserve?
I know coins are made from "precious" metals, but even notes are made from various materials too, so I am assuming its not because of this reason.…
user793468
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Investments: Feds buying more treasury bonds? How does it affect Bonds (going up or down)?
I have set up a 401(k) and I have bonds.
When the Federal Reserve buys more treasuries (today's news) what's the effect on bonds?
Should I sell my bonds or buy more?
hellomello
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Why did the composite rate for I bonds issued drop to 6.89% from 9.62% when the Fed has been increasing interest rate?
Why did the composite rate for I bonds issued drop to 6.89% from 9.62% when the Fed has been increasing interest rate? What is the correlation between I bonds rate and Feds fund rate?
HelloDarkWorld
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Why does the Fed buy treasury bonds through Goldman Sachs instead of from the treasury?
These animated creatures don't like it, and think the federal reserve is just giving Goldman Sachs money: http://www.youtube.com/watch?v=PTUY16CkS-k
Quora says it is an auction through dealers:…
dfrankow
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Why can't the Fed lower interest rates below zero?
Ben Bernake said today that he can't lower interest rates further because they can't be lowered below zero. IIUC benchmark interest rates are determined by what someone is willing to pay in an auction for a Treasury bond with a predetermined…
dsimcha
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Why does the Fed change rates in quarter points rounding?
I have always seen( since 1990s) that the Fed changes( cut/increase) interest rates in quarter point increment /decrements in USA that affect the world bond, stock market and borrowing rates, while I see world news where the ECB cuts by 10 points…
Raj
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Why is seigniorage different for paper notes and coins?
Wikipedia defines Seigniorage for paper notes and metal coins. Why is seigniorage for paper money not just face value - production cost? I can understand using just the interest rate in the age of the gold standard, but why today? Is it because the…
highBandWidth
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What are good investments to use as hedges when the Federal Reserve draws down quantitative easing?
Basically I think it is quite obvious that quantitative easing (QE) will be pulled back eventually and countries will start to tighten their monetary policy. When that happens, what kind of assets will be able to hold their value, and hopefully…
AZhu
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How are mortgage interest rates determined?
I know it's somewhat controlled by what the Fed sets interest rates at. I'm not clear on what exactly this interest rate is. Also I have heard that mortgage interest rates track Treasury Bonds. Where does this come into play?
JonF
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Why are bank rates based on the federal interest rate?
From what I have read, the Federal Reserve sets the "key rate", which is the rate at which banks can borrow money from the Reserve. However, I don't understand why both mortgage lending rates and savings interest rates are tied to this key rate.
The…
GendoIkari
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How much control over the Federal Reserve does the U.S. Government have?
Or, in other words: Who does the head of Fed report to? Is the Federal Reserve a private institution?
I'm going to be a bit naive here, have just read about how the Fed has been brought to life and can hardly believe that it did manage to survive…
matcheek
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