Low interest rates are like giving free money to banks etc . Why not just give us ordinary people free money ? Why don’t I get to borrow at the fed rate ? I will happily provide colateral. The right question is not why the fed sets interest rates, but why it does not provide the same rates directly to everyone including us little folk while cutting out the banking middlemen. We should all have a a fed account.
Low interest rates are like giving free money to banks etc . Why not just give us ordinary people free money ? Why don’t I get to borrow at the fed rate ? I will happily provide colateral. The right question is not why the fed sets interest rates, but why it does not provide the same rates directly to everyone including us little folk while cutting out the banking middlemen. We should all have a a fed account.