The Federal Reserve controls interest rates and monetary policy through tools like the fed funds rate, open market operations, and quantitative easing — here’s how it all works. You’ll learn what the Fed actually is, how its unique structure gives it independence from government, and why the dual mandate of maximum employment and stable prices can sometimes create tradeoffs. I walk through exactly how the Fed raises and lowers rates, including what happens when it buys or sells Treasury securities. I also cover how rate changes ripple through the economy to affect mortgages, credit cards, and business investment — plus the critical limitations of monetary policy that every investor should understand. Whether you’re trying to make sense of Fed headlines or understand how interest rate decisions might affect your portfolio, this video gives you everything you need.
Chapters
0:00 – What is the Federal Reserve?
0:14 – Fed Structure Explained
0:42 – Is the Fed Part of the Government?
1:17 – The Dual Mandate
2:03 – How the Fed Controls Interest Rates
3:09 – How Rate Changes Affect the Economy
4:00 – Fed Limitations & Policy Lag
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*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
