Pedantic or Not: Contrary to News Reports the Fed isn't "raising interest rates" ?
So isn't it technically false to say that the Fed raises interest rates (the ones that average people care about).
On the news they talk about how the Fed is about to "hike interest rates".
Yet all the Fed is really hiking is a niche interest rate that banks use to lend to one another overnight (which influences the interest rates the average American that watches the news care about).
Maybe this is stupid and not worth the rant but isn't it slightly annoying when people say it.
(Disclaimer: I have used the "shortcut" of saying that the "Fed is raising interest rates" before myself. Just thought this was amusing. I'm also not a know-it-all about finance as I barely grasp most of it anyway.)
What do you think happens when the Fed raises this « niche interest rate »?
This. I don't even get OP's post. Most rates are determined by an index rate + spread/margin. If the index rate goes higher, most rates on other things go higher too. Who raises the index rate? The Fed. It's purely semantics if anything
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