How the Federal Reserve Decides Interest Rates? | Economics | From A Business Professor

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Imagine you’re a homeowner, trying to decide whether to refinance your mortgage to save on interest payments. Or picture yourself running a small business, debating whether now is the right time to take out a loan to expand your operations. These decisions might seem personal and isolated, but they’re actually influenced by a much larger and powerful entity—the Federal Reserve. In today’s video, we’re going to explore how the Federal Reserve, often referred to as the Fed, plays a critical role in shaping these decisions by setting interest rates. By the end of this video, you’ll understand how the Fed decides on interest rates and why it matters to everyone—from consumers to businesses, and even to the global economy.