Which of the following interest rates does the federal reserve actually set?

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Does the Fed Set Interest Rates - Professor Aswath Damodaran

7 028 views | 18 Jun. 2015

Does the Fed set interest

Does the Fed set interest rates? Prof. Aswath Damodaran sets the record straight.


One moron hit the dislike

Matthias Havenaar



I'm just keeping his videos to my favorites browser

Dylan Martinez

Where was this guy all of this time, currently watching the valuation serie, he's a genius

Ashish Patel

GEEE I wonder WHO controls the FED.

Alessio Calcagno

I have many doubts and questions. Does not the Fed through the overnight Fund rates and fractional reserve system influence the money supply? I agree with you that both growth and inflation influence the long tail of yield curve. However, central banks do influence the short term rates, don't they? Central banks bought 11 trillion of treasuries, shouldn't that influence the liquidity in the market just a tad?
Let assume you are right. We had eight years of low growth and no inflation. Why the hell then we have a massive valuation of the stock market by any historical mean? Should not low inflation and low grow crash share prices? Companies margin get lower and level of bankruptcy increase. However, I didn't see many of this happening.
We can take your argument and push it further. So if tomorrow the Fed increase the Fund Rates by 500bps, yield curve should not change and share prices should not be impacted because "it is only grow and inflation that impact interest rates".
I am having hard time to believe it. Really hard. I see a bubble in every asset I look at. I see level of debt around sky rocketing and I do worry.

Which of the following interest rates does the federal reserve actually set?

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What Happens When the Fed Lowers Interest Rates

107 593 views | 14 Jun. 2019

If the U.S. economy

If the U.S. economy appears to be in trouble, the Fed might cut interest rates to drive economic growth. When the Federal Reserve raises or lowers interest rates, investors may see changes in the stock market immediately. Learn about the types of investments that could potentially be the most resilient in a low interest rate environment.

Den Cetrov

Too soft, reality is harsh...

Lali Almendariz

Thank you!!!

winston barquez

The inverse relationship between interest rates and stock prices.

Dumb Ass

The Fed loves war because they create a demand of products

duong nguyen

What does fed cut rates means for mortgages?

Jabier Razak

Forgot to say increase inflation


Wuhan virus brought me here

Nathan Schmitz

Who’s here cuz the rate is 0 now?

j Miller

Prior to the first
Great Depression the federal reserve had artificially low interest rates set by
old line Republicans as pay back for corporations that helped them get elected.  Banks were then able to loan millions to feed
speculative schemes.  The American public
was in enormous debt and their wealth was all on paper.    Within days the wealth of a large part of the
country which had been concentrated in the vastly inflated stock prices simply
vanished.  Speculation which created
wealth disappeared in the great crash.  The
wealth of the world was concentrated in the hands of a small class at the top.
The wealth trickling down from the top was not enough. The great bulk of the
population simply couldn't create the demand needed to keep up with the increasing
supply.  Manufacturers decreased
production.   Jobs were lost.  The jobless could no  longer paid for their mortgages.   Millions lost their homes. Then as now,  the greater the stock bubble,  the greater the crash and depression.  The Federal Reserve must not be seen as
incompetent and incapable of not caving in to political pressure if it is to
survive the economic depression that is coming. 
Those that think FDR"s policies that helped Americans get through
the first great depression were too socialist are in for a rude awakening.

Amed Sayed

FED created this rigged game and Bernanke is one of the biggest criminal country in the world.
FED will eventually destroy the world


Who’s here because of a virus?

Official Colors

Obama: 0% = Poor
Trump: 2.5% = Rich


Its all a bullsht game....every time the avj joe gets a little bit of money in his pocket, taxes and interest go up which takes that money back!!!! When he is below water and sinking the rates come down just enough to get him back to floating!!! After all cant get taxes from someone that sank, the system is designd to keep people at a level that ismjuuuust enough to milk them... Total bullsht

Rex Chen

so why the hack the stock drop crazy today


3 rate cuts already this year, dollar index should be waaay lower by now

Veer Bharat

So in crux,
Low interest rates leads to more money, which helps new businesses start, these venture give jobs, these employees starts spending, demand incr, which finally inc inflation. So repeat the process again.

Hank Chinaski

Kill the Fed.

Francis Artemio Landia


Fiuzz Hafiz

00:03:12 Shot taken from TM Telecom tower at Bukit Gasing, Kuala Lumpur, Malaysia

Aw Chakula

This cut won't do the trick as this dip isn't a demand problem it's a supply problem...

Ferrar Kumar

Okay, Keynesian

Blame low interest rates — No, that's the animal spirits

Lesa Hill

The Fed is a private Rothschild bank not good for the We the people.

Chronic Crypto

So Trump admits his economy is weak af because they just cut interest rates again.

Bob Smith



sum this crap up by saying trickle down economics

Humming Byrd

German interest payments this year are roughly €9 billion from roughly €40 billion last year, on substantially less debt.

Hemp Chew

Dude that is not the feds job. Atleast it shouldn’t be

Ken Wilson

Does this fed cut help with refinancing homes ?


buy Gold and Bitcoin and avoid this mess ?


If you're high just put it on 0.75x

I got chu!


I’m either stupid or i need some drawing or some cartoon PowerPoint to better understand this. You make it seem like interest rate is good? Doesn’t it make the dollar lose its value?

Hammer Home

0:35 Sooooo the economy was the strongest through to the end of the 70"s ....LMFAO

Doctor Love

So basically it's a difference between a dollar burger and a dollar ?


cut rates think negative rates then quantative easing pumping cheap money into the system they never say buy silver/gold miners which I have and have had 100 percent gains like barrickgold/pan American silver/Alamos gold

Vidal Sanchez

Lower interest rates would cause more stock speculation

Real Truth

The FEDs are illegal. They make sure to keep you as poor as posible to make sure you'd be a slave for a long time.

hady Al-Sukkary

how is lowering interest rates will steer inflation to more healthy levels you say ? as interest rates are lowered, more people are able to borrow more money. The result is that consumers have more money to spend, causing the economy to grow and inflation to increase. so what do you mean by driving inflation to a healthier levels ?!


This puppet conveniently forgot to mention how lower interest rates screw the middle class. When interest rates drop, people who save money in interest earning checking or savings accounts earn a negative real rate of return (ie LOSS). This causes them either to lose purchasing power over time or invest in high risk assets just to keep up with inflation. How does this help the middle class?


You forgot to mention the $22 trillion in debt that has been driving the us stock market... crash!!

John Townsend

"The only problem our economy has is the Fed" ... so says stable genius trump. Really? How about tariffs imposed willy nilly without fore thought? Or government shut downs over a wall that Mexico won’t pay for? Or a ballooning federal deficit because of tax cuts that aren’t paying for themselves? Or a complete dysfunction and utter chaos in the WH now aggravated even more by the deliberate reckless dismantling of national security? And the nonsensical tweeting about firing the chairman of the Federal Reserve doesn’t help either.


The Mexican peso and other emergent country lost ?

Brandon Davis

Nice song but check out austrian economics, peter schiff and mises.

Jan Markus

Resolved: Futures limit down

Ivan Panzovski

The Fed is a privately owned entity. They only care for themselves. Back the dollar with silver and gold and get rid of the Fed.

Alex Orellana

will this also lower interest rate on a new mortgage/refi ?

Ken Ing

Seniors get screwed again for almost twelve years low interest rates have helped the banks and Wall Street gamblers and hurt retired people fixed incomes are never flexible


Free real estate

Mike Joseph

the stock market is over valued because of stock buy backs

Anurag Sherma

Trump has to fix all fronts. Our FED is Wall Street, this is an excerpt from the FED website "Reserve Banks are required by law to transfer net earnings to the U.S. Treasury" ... "after legally required dividend payments" .. to Wall Street. Can FED like BoE be nationalized ? prohibiting other banks from issuing their own banknotes, making the FED politically independent for the first time like BoE. A Wall Street quote "Permit me to issue and control the money of a nation, and I care not who makes its laws! -- Mayer Amschel Rothschild"

Leo Rodriguez

Does this mean my car interest rate is 0 now?


So mortage rates drop ?

Brett Sanford

It just inflates the bubble



Josef K

Thanks. My colleagues will be very impressed at work tomorrow. My son on the other hand, will still think I’m a shmuck.


I don't believe spurring people to spend when they should be saving is virtuous.

Roberto M.

Lies. The Fed doesn't create employment. All this does is devaluate people's hard-earned money making them poor.

Also, it isn't virtuous at all forcing people to spend their savings. The worst can't happen at this time in history (COVID19) is spend money excessively and irracionally

Sharjeel Khan

good video !

TD Ameritrade

You now know what happens when the Fed lowers rates, but what about if they go negative? bit.ly/392KuMb

Peter Hunt

the background music is very annoying and distracting

Ricky Heck

820 credit score debt free 50k in bank waiting for home prices to drop from the clouds for my first home purchase

Kello hey


Wilfred Motosue

Great! I am waiting to see how much reduction my bank will reduce my construction loan to. I hope a lot.

A Sperm Whale 69

Who is here bc of the coronavirus?

Which of the following interest rates does the federal reserve actually set?

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Federal Reserve Raising Interest Rates: Does That Actually Raise Mortgage Rates?

26 views | 27 Feb. 2018

With rates on the rise

With rates on the rise this is a very common question. Does the fed raising rates raise the mortgage rates? Sit down with long time mortgage pro Beny Rabuchin and listen to how the Fed can effect home loans.

For more information on buying or selling a home in Southern California, contact David Feldberg or visit http://www.coastalgroupoc.com today!