Answer:
The federal funds rate, is the rate at which banks borrow money overnight. When the Fed wants to stimulate the economy, it will lower the short-term funds borrowing rate. Banks typically lower the interest rates that they charge to consumers for a variety of their loans.
Explanation:
The federal funds rate is the Fed's primary tool for implementing monetary policy in the United States.
The Fed can change the cost of borrowing in the economy by adjusting the federal funds rate, which influences the overall demand for goods and services.
Federal Funds Rate affect consumers looking as:
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