{"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 <\/strong>\u201cInterest rates are extraordinarily low and they are going to stay that way for a long time.\u201d<\/p>\n <\/p>\n – 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 We all know how the Coronavirus pandemic changed businesses around the world. Many of them were closed down permanently forcing 50 million people out of the workforce, according to the visual capitalist<\/a>.<\/p>\n\n
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Lower Fed Rate Is a Blessing for the Borrowers<\/h2>\n