59. How the Fed Changes Interest Rates
April 28th, 2009 | by James |InformedTrades
www.informedtrades.com A lesson on open market operations and how the federal reserve increases and decreases the money supply in order to move interest rates and what this means for traders of the stock, futures, and foreign exchange markets. In our last lesson we looked at the structure of the Federal Reserve and the components of the FOMC, the portion responsible for implementing Monetary Policy. Now that we have an understanding of this, we can look further into exactly how monetary …
10 Responses to “59. How the Fed Changes Interest Rates”
By charlybrown1000 on Apr 28, 2009 | Reply
hi dave, I am interested in what you answered to that question. Could you send me that email too? thanks for everything!
By subprime2006 on May 1, 2009 | Reply
purchase and refinance (417K or below)
30 years fixed rate = 4.375% (cost 1 percent or 1 point to the bank or BROKER).
By InformedTrades on May 2, 2009 | Reply
yes in general an increase in the money supply should result in rising prices. Best Regards, Dave
By wojtek0000 on May 4, 2009 | Reply
im confused. wouldn’t an increase in the money supply cause prices to rise? more money means less purchasing power of existing money.
By PrettyPoeRoses on May 5, 2009 | Reply
*****
2 up
pOe
By InformedTrades on May 6, 2009 | Reply
Hi ndnbikerguy, Thanks for the comment I am glad you liked it. I don’t respond to questions via email however there is a free ask/answer question section which you can find in the discussion forum at InformedTrades. If you would like to post there I will be happy to respond and you should get some good input from others as well. Best Regards Dave
By ndnbikerguy on May 9, 2009 | Reply
this was absolutely excellent. I am taking AP MAcro online and im struggling because i have to teach myslef, and this video helped me alot. Thankyou.
Is it ok if i email you if i have questions for my class?
By InformedTrades on May 11, 2009 | Reply
Hi Spyce921, These are great questions which show you have a good fundamental understanding of the global markets. As I am limited in space for commenting here on YouTube I am going to send you over an email with a link to some more resources that answer these questions. Best Regards, Dave
By spyce921 on May 15, 2009 | Reply
First off thank you for your videos they are very informative and helpful. My question is when the Fed drops interest rates doesn’t this have a major impact on foreign investment in the economy? And from a monetary standpoint which is better having foreign investor loss faith in the economy or stop investing or having nationals being able to spend more? I hope my questions make sense thank you in advance
By lingojac on May 18, 2009 | Reply
Thank you for helping me review for my macro test tomorrow