How Interest Rates Are Set: The Fed’s New Tools Explained

How Interest Rates Are Set: The Fed's New Tools Explained

The Federal Reserve has kept interest rates at near zero since the 2008 financial crisis. To raise them, it has come up with a new set of tools. A WSJ explainer.

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Marshall Auerback, Levy Institute/Economists for Peace and Security joins Thom. Economists all over the world are waiting to see if the Federal Reserve will raise interest rates – potentially setting off a new financial crisis. So what will the Fed end up doing? And what should that tell us about the underlying state of the economy?

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