The Federal Reserve's control over interest rates can have significant implications for individual consumers. When the Fed lowers interest rates, borrowing costs decrease, which can make it cheaper for consumers to take out loans for things like homes, cars, or education. This can stimulate spending and contribute to economic growth. Conversely, when the Fed raises interest rates, borrowing costs increase, which can make it more expensive for consumers to take out loans. This can slow spending and potentially slow economic growth.
Economics can be intimidating to the person who is not well-versed in business and mathematics. This...
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