What’s the Relationship Between Inflation and Interest Levels?

What’s the Relationship Between Inflation and Interest Levels?

Interest and inflation prices in many cases are connected and often referenced in macroeconomics. Inflation is the rate of which prices for products and solutions increase. The interest rate, or the amount charged by a lender to a borrower, is based on the federal funds rate that is determined by the Federal Reserve (sometimes called “the Fed”) in the United States.

By setting the goal for the federal funds price, the Fed has at its disposal installment loans online nebraska a robust device so it utilizes to influence the price of inflation. Continue reading What’s the Relationship Between Inflation and Interest Levels?