Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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When will the prime rate go up and what factors drive it?

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The prime rate is the best interest rate you can get, and it's influenced by the economy.

 

In order to temporarily suppress economic growth, The Federal Reserve will increase the fed funds target rate, which will help to lower inflation over time. A rise in the cost of fed funds also contributes to an increase in the prime rate, which adversely affects the ability of both companies and consumers to access low-rate credit.

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