This is the one question bothering me the most lately trying to think it through…
How does the FED, by injecting money into the system and lowering the Fed Funds Rate, affect the interest rate of the every day consumer? Is is because sense there’s a greater supply of money, banks are able to reduce their price (interest) of their loans?
More succinctly, I guess I’m trying to figure out how the FED directly or indirectly affects the interest rate of joe shmo’s credit card / loans.