{"id":1704,"date":"2020-09-18T05:25:03","date_gmt":"2020-09-18T05:25:03","guid":{"rendered":"https:\/\/businessner.com\/?p=1704"},"modified":"2020-09-18T05:25:03","modified_gmt":"2020-09-18T05:25:03","slug":"how-short-term-borrowers-can-gain-from-the-recent-fed-rate-policy","status":"publish","type":"post","link":"https:\/\/businessner.com\/how-short-term-borrowers-can-gain-from-the-recent-fed-rate-policy\/","title":{"rendered":"How Short-Term Borrowers Can Gain From the Recent Fed Rate Policy"},"content":{"rendered":"

An announcement by the Federal Reserve to keep the fed rate near zero should support the short-term borrowers during the pandemic, reported CNBC Thursday<\/a>.<\/p>\n

Earlier on Wednesday<\/a>, Federal Reserve declared that it will keep the interest rates down to reverse the economy from the Covid-19 pandemic. Moreover, the central bank also had a plan to run higher inflation in a major policy shift last month.<\/p>\n

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\"How<\/strong>\u201cInterest rates are extraordinarily low and they are going to stay that way for a long time.\u201d<\/p>\n

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– Laura Veldkamp, professor of finance and economics at Columbia University Business School.<\/strong><\/p>\n<\/blockquote>\n

All this will help the borrowers to gain temporary cheap money until the next rate hike happens in the future.<\/p>\n

However, the fed rate is not the interest rate for the consumers and affects the borrowing rates significantly.<\/p>\n