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Why does the Federal Reserve focus on targeting the federal funds rate?
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Why does the Federal Reserve focus on targeting the federal funds rate?

User Nur L
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9 votes

Answer:

The Federal Reserve uses certain tools to adjust this rate, because it influences other interest rates, such as those you pay on credit cards, mortgages, and bank loans. It also affects the value of the U.S. dollar and other household and business assets. That makes it the most important interest rate in the world.

Step-by-step explanation:

Because

User Ryan Christensen
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