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Inflation affect the interest rates

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How would increased inflation affect the interest rates you would have to pay the lender if you sign for a car loan or house mortgage with increasing Prices (Inflation) ? (remember interest rates are the Price of Money that the Lender makes a Loan for). The FED (Federal Reserve) www.federalreserve.gov adjusts certain interest rates in the Economy and those rates are taken into consideration in our discussion above regarding inflation. Take a look at the site, Federal Reserve website, and tell us more about the link between Inflation, the FED, the interest rates they adjust and the interest rates we pay on our vehicles? Please use your research at the website ( www.federalreserve.gov ) to explain.

Reference no: EM131221417

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