Oct. 7, 2021

How Are Interest Rates Set?

How Are Interest Rates Set?

Ask just about anyone on Wall Street how interest rates are set, and they'll tell you it's the Federal Reserve that sets interest rates. And indeed one of the Fed's Principal committees is the Open Market committee, who's principal responsibility is to s...


Ask just about anyone on Wall Street how interest rates are set, and they'll tell you it's the Federal Reserve that sets interest rates. And indeed one of the Fed's Principal committees is the Open Market committee, who's principal responsibility is to set the fed's monetary policy, of which short term interest rates are a key part.

But there's much more to the story...