what interest rate exactly is the Fed trying to cut?

Phill Twist

Phill Twist

Everyone is talking about the Fed doing this and that to the interest rate. But what exactly is the interest rate that the financial press is talking about?

Why is this Fed interest rate so important given that there are so many kinds of interest rates? Such as savings deposit interest rate, mortgage interest rate, car-loan interest rate ... Why is this Fed interest rate so much more important?
 
It is the base rate charged to banks that affects all other rates at the short end of the curve. Basic financial economics on how that affects spending in the economy.

Additionally if the yield curve inverts, meaning long rates dips lower than the short term, you will have no better indicator for a slow down in the economy.
 
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