Fed Keeps Interest Rates the Same 🚫📈
Hey there! Have you ever heard about the Federal Reserve, or “The Fed” for short? It’s like the USA’s big bank that helps keep the economy healthy.
On Wednesday, June 18, The Fed decided to keep interest rates the same. But what does that mean?
What’s an Interest Rate? 🤔
An interest rate is like the price of borrowing money. When rates are low, people and businesses borrow more, which can help the economy grow. When rates are high, borrowing slows down.
Why Did They Keep Rates the Same? 🌐
There are some big things happening in the world right now:
- Trade Wars: There have been disagreements between countries about trading goods, which can affect prices and jobs.
- Global Conflicts: Tensions in places like Israel and Iran can impact the world economy.
The Fed is being careful because they’re not sure how these events will play out. By keeping rates the same, they’re watching and waiting to see what happens next.
Why Should We Care? 🌟
Decisions like this can affect things like jobs, prices at the store, and even how much it costs to borrow money for things like houses or cars in the future.
Pretty interesting, right? The world economy is like a giant puzzle, and The Fed is one of the players helping to put it together!
Reference(s):
cgtn.com
