Federal reserve increases short term interest rates

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How the bond market reacts when the Federal Reserve increases short term interest rates." The "Fed" has been slowly increasing the interest rates they charge, this is the interest rate at which banks and credit unions lend to other banks and credit unions overnight. This then translates to what these banks and credit unions charge consumers and ends up increasing the return on any investment, as well.

So, is it a good thing or a bad thing, when the Fed raises rates? Who wins and who loses?

Reference no: EM132613344

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