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The Federal Funds Rate is one of the most important interest rates in the US economy. Because of its effect on INFLATION, ECONOMIC GROWTH, and EMPLOYMENT, the fed funds rate has a significant effect on the broader economy. The fed funds rate is one of the tools that the Federal Reserve uses to determine the nation's monetary policy. The federal funds rate is the interest rate banks charge each other for overnight loans to meet their reserve requirement. This rate also determines the bank's prime lending rate, which in turn affects loans from commercial or business loans to private home mortgages, to short term loans, auto loans, and credit cards. The Federal Open Market Committee, or the FOMC, is a branch of the Fed that meets 8 times a year to determine the fed funds rate. Closely watched by investors because of how it affects the stock market, the FOMC's decision on the fed funds rate also affects the currency markets and the exchange rates relative to the US Dollar. #fed #fedfundsrate #business #consumer #economy #employment #inflation #interestrates #fundsrate #fomc #federalreserve #recession #unemployment #bearmarket #stockmarket #currency

Inflation is a rise in prices of a selection of products and services. Commonly expressed as a percentage, it also refers to the decline in the purchasing power over time. Inflation could lead to a decline in economic growth and ultimately an economic contraction or a recession. The Consumer Price Index - or CPI - is the most widely used measure of inflation. Financial markets, government policymakers, businesses, and consumers watch the CPI very closely. The Federal Reserve closely monitors the CPI to adjust monetary policy and implement appropriate measures to control the money supply and credit. The Fed may use the discount rate, purchases or sales of US Treasuries to control money in circulation. The Producer Price Index - or the PPI - measures prices at the producer level. Producer prices greatly influence prices charged at the consumer level. This video explains the causes of inflation from government money printing, stimulus checks, tax rebates and other causes and the terminology used (DEMAND PULL Inflation , COST PUSH Inflation, and BUILT IN Inflation). Wars, natural disasters and weather events may cause inflation by limiting supplies. Sound monetary policy and fiscal policy can help reduce inflation. #inflation #cpi #purchasingpower #currency #monetarypolicy #credit #business #commodities #consumer #economy #employment #interestrates #recession #demand #cost #money #federalreserve #thefed #ppi #producer #moneyprinting #moneysupply #stimuluscheck #hyperinflation #prices #risingprices #inflation2022

The most widely used definition is a decline of GDP, or Gross Domestic Product, for two consecutive quarters. This is also called the technical definition. In the "2022 Recession," few economists explained that while the technical definition says the US economy is in recession, some indictors show the economy still has not entered a contraction. This video discusses the definition, economic indicators, predictors, effects of a recession, unemployment, interest rates, markets, causes, and government policies. #recession #recession2022 #economy #business #stockmarket #stocks #inflation #interestrates #gdp #unemployment #manufacturing #payroll #retail #consumer #realestate #bearmarket #employment #smallbusiness #oil #commodities #yieldcurve