Name: Fed Rates Explained in a Rube Goldberg Machine | The New York Times
Uploaded: 2021-06-27T21:01:10.000Z
Duration: 1 min 35 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

To-infinitive

When the FED wants to fight inflation, it raises interest rates, which sets up a chain reaction in the economy.

We build this machine to show you how it works.

It all starts when the FED makes money more expensive for big banks and hedge funds, and that pushes up short term and long term rates.

Now, more people want the dollar, making it stronger and stronger. And more people want bonds, so stock prices fall.

So, while you might earn more with your savings account, you'll pay more on your credit cards and loans.

which means businesses could sell less, hire fewer workers, and put things on sale.

All slowing the economy, and everything goes as expected, inflation will fall.

But, it's a delicate system, and there're a lot of places where the machine could fail, so, like many of us,

the FED will be watching the economy to see what happens next.