You’ve probably heard about the Federal Reserve (or “the Fed,” as we’ll call it here), especially in the news, right? Maybe you’ve come across the term “Fed fund rate,” too. Sounds complicated, doesn’t it? But don’t worry, that’s why we’re here today. In this article, I will help you get to know our big friend, the Fed, a bit better.  I will break down:

What the “Fed fund rate” is.

Why it matters to you.

Why it gets so much attention.

Impact on the whole world when the Fed Fund Rate Changes, and

What we can learn from Fed Fund Rates change histories.

First Things First: What is the Fed?

Before we dive into the Fed fund rate, let’s quickly touch on what the Fed is. The Fed is the United States’ central bank, and it has a big role in keeping...