The Federal Reserve's Fickle Finger on Interest Rates The Federal Reserve's recent decision to lower interest rates has sent shockwaves through financial markets, leaving many wondering what this means for individual savers and borrowers.
To understand the implications of this move, we need to examine the broader context: how much have interest rates changed over the past 50 years?
Interest rates have undergone significant fluctuations during this period. In the early 1980s, extreme inflation prompted the Fed to raise interest rates to over 19%.