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d. what did the federal reserve set interest rates to at the beginning of 2020, the first quarter of 2020 (q1 2020)? what interest rate did the taylor rule suggest? enter answers to two places after the decimal. if a value is negative, be sure to include a negative sign in your answer.

Sagot :

At its meetings on March 3 and March 15, 2020, the Fed reduced its target for the federal funds rate—the cost for banks to borrow money from one another overnight—by a combined 1.5 percentage points. Due to these reductions, the funding rate is now between 0% and 0.25%.

What were Taylor's recommended interest rates, and what are Federal Reserve Set Interests?

The federal funds rate, which the Federal Reserve sets as a major interest rate, is what banks charge one another for very short-term loans. The Federal Reserve decreased the federal funds rate's target range from 1% to 0%.

As a central bank, the Federal Reserve works to accomplish three objectives set forth by Congress: maximum employment, price stability, and moderate long-term interest rates in the United States.

The Taylor Rule establishes a connection between inflation and economic growth and the policy rate of a central bank. It was developed in 1993 by economist John Taylor and is based on a federal funds rate equilibrium that is 2% higher than the annual rate of inflation.

To know more about Federal Reserve Set Interest, visit:

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