How the Fed's interest-rate decision ripples through your life
Process map by Brian. 15 steps, 1 layer. Tags: economy, news, finance.
- Economic data: Inflation, jobs and growth numbers come in
- The Federal Reserve: The rate-setting committee meets
- The Federal Reserve: Is inflation too high?
- The Federal Reserve: Raise the target interest rate
- Banks: Banks adjust what they charge each other
- Banks: Mortgage, credit card and savings rates move
- Households: Borrowing costs more or less, and saving pays more or less
- Households: People spend and borrow more or less
- Markets: Stocks, bonds and the dollar react
- Economic data: Does inflation or unemployment respond?
- The Federal Reserve: Adjust again at the next meeting
- The Federal Reserve: Effects take months, so wait and watch
- The Federal Reserve: Is the economy weak?
- The Federal Reserve: Cut the rate
- The Federal Reserve: Hold steady