dChan
Anonymous ID: 5845b9 Sept. 17, 2025, 1:17 p.m. No.23615244   🗄️.is 🔗kun   >>5328 >>5480 >>5632 >>5749 >>5788

JEROME POWELL REDUCED THE FED INTEREST RATE BY 0.25% MEANING THAT THE RATE NOW IS BETWEEN 4 AND 4.25%

Note: below is the answer to why there is a range, so it does not actually help anyone.

the b.i.s stated that the interest rate should stay between 4 and 4.5% to suck up asset whilst everyone loses their business and homes which are sucked up by hedge companies like blackrock, vanguard and state street.

trump needs to slap jerome harder to see if he can get him to reduce it lower

The Federal Reserve sets a target range for the federal funds rate—currently 4.00% to 4.25%—rather than a single rate, to give the Federal Open Market Committee (FOMC) more flexibility in managing short-term interest rates and to help keep financial conditions stable [1].

 

Why a Range?

The range allows the Fed to influence the economy more effectively:

 

It provides room for the New York Fed’s trading desk to conduct open market operations and maintain stability in the overnight banking system.

It helps prevent abrupt swings in the effective federal funds rate (the actual rate banks use).

The effective federal funds rate typically settles somewhere within this range, based on market conditions.

 

Who Uses Which Rate?

Banks and Financial Institutions: They use the federal funds rate as a benchmark for lending to each other overnight. The actual rate they charge (the effective rate) usually falls within the 4.00%–4.25% range.

Consumers and Businesses: They don’t use the federal funds rate directly. Instead, it influences other rates:

Credit cards, auto loans, and adjustable-rate mortgages: Often tied to the prime rate, which is typically about 3 percentage points above the upper end of the Fed's target range. With the current range, the prime rate is likely around 7.25%.

Savings accounts and CDs: Interest rates on deposits often rise or fall based on changes in the federal funds rate, though banks may adjust these rates gradually.

Fixed-rate mortgages: These are more influenced by long-term bond yields (like the 10-year Treasury) than the federal funds rate, but can still be indirectly affected.

In short, the 4.00%–4.25% range guides the broader financial system, but the exact rate any individual or institution pays or earns depends on the type of financial product and market competition.

 

AI-generated answer. Please verify critical facts.