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Interest Rate as of 3December2010 ENG Bank of America Form

Interest Rate as of 3December2010 ENG Bank of America Form

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you may have noticed that interest rates on loans and savings accounts can change from time to time for instance one year you might pay a certain interest rate on a car loan but the next time you shop for a car that rate might be several percentage points higher or lower so what makes interest rates rise and fall now the actual process is much more complicated but essentially interest rates fluctuate mostly as a result of things the Federal Reserve does to keep our economy stable the Federal Reserve or the Fed is the central bank of the United States and it has two main goals to keep prices stable that is to make sure inflation doesn't get out of control and to encourage job creation when employment is low when a lot of people are out of work the Fed might try to encourage job creation by pushing interest rates down when interest rates go down it becomes cheaper to borrow money which means people and companies will be more likely to take out loans and as a result they'll spend more mon

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