Ask, what interest rate is the Fed raising interest rates?

At 3 a.m. Beijing time on December 17, 2015, the Federal Reserve announced a 25 basis point interest rate hike for the first time after the relending crisis.

The U.S. dollar is added to the "Federal** rate", which is the "interbank market rate", the most important of which is the overnight call rate. The new federal** target rate will remain in the range of the to.

So what are the "interbank interest rates" and "overnight rates"? (The encyclopedia explanation is too abstract, I'll put it in the vernacular).

The peer-to-peer lending market refers to the market for short-term and temporary position adjustments between financial institutions.

So the question arises again, what is the 'short-term, temporary position adjustment market between financial institutions'? It first appeared in the United States, but now it is available in most countries. The reason for this is that the Federal Bank of the United States imposes a "statutory reserve ratio".

So what is the "statutory reserve ratio"? Take the People's Bank of China and ICBC as examples: the central bank stipulates a reserve requirement ratio of 5%, so ICBC must set aside 5% of every money included as fixed funds to ensure stable deposits and withdrawals for customers.

For example, for every 10 million deposits obtained by ICBC, 500,000 yuan must be left. The remaining 950 can be used for purposes such as loans or other investments. However, at the time of the settlement period, no bank can guarantee 100% that the deposit margin is no more or less.

Some banks have more, some have less. Under normal circumstances, the one that lends more to the less is called the position adjustment, and the market is called the peer lending market. In other words, the Chinese translation is too complicated, and the English is inter-bank market, which is easier to understand...

Overnight Lending Rate: The above-mentioned mutual currency circulation between banks is called called a call to lending. This behavior generally occurs in the short term. The minimum is half a day and the maximum is 7 days. An overnight is a day.

1. Why does the U.S. say that the interest rate hike is an increase in the peer lending rate, while the Chinese interest rate hike refers to the borrowing rate?

Because China has not implemented interest rate liberalization for a long time, the interest on bank deposits is the most important for ordinary people, and the interest on loans is the most important for enterprises. However, the interest rate in the United States has become market-oriented, and the interest rate on bank deposits and loans is different, and the most basic interest rate is the interbank lending rate. I've finally introduced the basics...

4. The reason for the interest rate hike.

The Federal** interest rate is the most important short-term interest rate in the U.S. financial markets and directly affects the cost of money circulation between financial institutions. The US dollar rate hike is aimed at preventing the economy from overheating, or curbing inflation. In other words, the U.S. economy is getting better and better.

So why is the economy overheating and raising interest rates? Rapid economic growth will increase the amount of money in the market, and too fast the increase in money in the market will produce inflation, so it is necessary to reduce the amount of money circulating in the market by raising interest rates.

What is the Fed rate hike?

1. The Federal Reserve's interest rate hike is added to the deposit interest and borrowing interest, which is conducive to tightening liquidity.

Instead of borrowing, the market is tightened, less money is in the market, and thus inflation is reduced.

2. Interest rate hike, that is, the behavior of ** banks in a country or region to raise interest rates, so that the borrowing costs of commercial banks to ** banks are increased, and then the interest of the market also increases. The purpose of interest rate hikes includes reducing money**, suppressing consumption, suppressing inflation, encouraging deposits, slowing down market speculation, and so on. Of course, interest rate hikes can also be used as an indirect means of increasing the value (exchange rate) of the country's or region's currency against other currencies.

Why is the Fed raising interest rates? What does the rate hike mean for the United States?

The Fed's interest rate hike means that the interest on the money deposited in the U.S. has become higher.

Interest rate hike is the act of raising interest rates by the ** banks of a country or region. It usually refers to the increase in deposit interest and loan interest, so that commercial banks and other financial institutions increase the cost of borrowing to the first bank, and then force the market interest to also increase. The purpose of raising interest rates includes reducing money**, suppressing consumption, suppressing inflation, encouraging deposits, slowing market speculation, and so on.

The impact of the Fed's interest rate hikes:

1. The U.S. Federal Reserve's interest rate hike is to raise the federal ** interest rate after the Federal Reserve's decision. The purpose of interest rate hikes includes reducing money**, curbing consumption, curbing inflation, encouraging deposits, slowing market speculation, and more. The increase in interest rates can also be used as an indirect means of increasing the value (exchange rate) of the region or other currencies in the region.

2. From a macroeconomic point of view, raising interest rates and lowering interest rates is only a means for the best banks, and its purpose is to regulate the macroeconomy. From the Fed's point of view, the starting point of every policy is to safeguard and escort the U.S. economy. Therefore, this round of interest rate hikes must be the response taken by the Federal Reserve to realize that the U.S. economy has encountered problems.

3. The rationale for raising interest rates in the United States includes curbing inflation, accelerating economic development, keeping long-term currency and credit growth consistent with long-term economic potential growth, thereby effectively promoting full employment, stable prices, and moderate long-term interest rates.

4. The Fed's interest rate hike has increased the trend of the dollar index, thereby allowing more domestic and foreign funds to flow to the United States. In particular, overseas companies investing in the U.S. will be more willing to exchange foreign currency for U.S. dollars.

5. Another major impact is. The Fed's interest rate hike will cause short-term interest rates to rise, the dollar will rise, and the price will fall. At the same time, the Fed's interest rate hike is accompanied by a balance sheet reduction policy. Shrinking the balance sheet will lead to higher long-term interest rates, which will be a short-term one.

A U.S. dollar rate hike is a Fed rate hike.

It means that the interest on US deposits has increased, because the US dollar is an international currency, and the interest rate has increased, and the masses will consider depositing their deposits in the bank to earn interest, and naturally the US dollar circulating in the market will decrease, the US dollar will appreciate, and the RMB will depreciate relatively.

The impact of the Fed's interest rate hike on the market and the public is as follows:

1.The Federal Reserve will raise interest rates and deposit bank deposits will increase, so the amount of money used for consumption in the market will decrease, which will indirectly lead to a decrease in China's export sales;

2.The dollar appreciates after the Fed raises interest rates, then the money market.

The currencies of other countries, including the RMB, will depreciate in the short term, and the depreciation of the RMB will directly lead to the intensification of China's capital outflow;

3.If the U.S. dollar appreciates, then the U.S. dollar denominated commodities.

**will**, for example, foreign oil ** will go down, indirectly exerting a reaction force on the adjustment of China's petroleum**.

had to be lowered; 4.If in the long run, the Fed will also enter an interest rate cut cycle after a certain cycle after raising interest rates, then the RMB will be ** against the US dollar, the equivalent value of RMB foreign currencies will be **, and a large amount of capital will flow into China.

What is interest on federal deposits? Why does the Fed raise interest? In the *** investment market, everyone knows the interest rate on AP deposits.

The Federal Reserve interest rate is the focus of financial markets and the event with the highest rate of attention. When the Fed moves, the market trembles, and the Fed's interest days are always exciting. The following is a comprehensive explanation of the interest of AP storage.

Please tell me what is the interest on federal deposits, and why is the Fed raising interest? What is the impact of AP deposit rates on gold and silver?

What is interest on federal deposits? What is the purpose of the Fed's interest rate hikes?

The Federal Reserve is the central bank of the United States, and one of its main tasks is to keep the economy healthy, create enough jobs, and maintain price stability. The Fed's interest rate hike is an act of the US central bank raising interest rates, commercial banks raising the cost of central bank loans, and increasing market interest rates.

The purpose of AP deposit interest is to reduce money**, curb consumption, curb inflation, encourage deposits, moderate market speculation, etc. The interest on AP deposits can also be used as an indirect means of dispersing the high monetary value (exchange rate) of the group against other currencies.

Why do I want to add interest on AP deposits?

Federal deposits** point to near-zero interest rate anomalies, potential risks to financial stability, an improving labor market, and reduced resistance to growth.

What is added to the profit of AP deposits?

The Federal Reserve's interest rate hike is the behavior of the ** bank in a country or region to raise the interest rate, which increases the borrowing cost of the commercial bank to the ** bank, and then forces the market to increase the interest rate.

The purpose of interest rate hikes includes reducing the number of hail coins**, suppressing consumption, suppressing inflation, encouraging deposits, slowing market speculation, and so on. Interest rate hikes can also be used as an indirect means of increasing the value (exchange rate) of the country's or region's currency against other currencies.

The reasons for the Fed's interest rate hike include controlling inflation, accelerating economic development, and maintaining the long-term growth of total money and credit in line with the long-term potential growth of the economy, so as to effectively promote the goals of full employment, stable prices, and moderate long-term interest rates.