The Fed & Interest Rates
From 'what is the Fed?' to reading an FOMC statement — understand the single most important force behind interest rates, and why it moves your investments.
Educational purposes only. This content does not constitute investment advice. Read our disclaimer
StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.After this course, you'll be able to:
- What the Federal Reserve is, why a central bank exists, and how it stays independent
- The Fed's dual mandate — stable prices and maximum employment — and the tension between them
- How the FOMC sets the federal funds rate across its eight meetings a year
- How a rate change ripples into stocks, bonds, savings, and mortgage rates
- Why the Fed raises rates to cool inflation and cuts them to support growth
- How to read a Fed announcement and the 'dot plot' — as education, not a trading signal
Lessons in this course
Six short lessons on what the Fed is, how it sets interest rates, and why those rates move stocks, bonds, and mortgages.
What Is the Federal Reserve?
The United States' central bank — what it is, why it exists, and what it actually controls.
The Fed's Dual Mandate
The two goals Congress gave the Fed — stable prices and maximum employment.
How the Fed Sets Interest Rates
Meet the FOMC, the federal funds rate, and the basis points that markets hang on.
How Interest Rates Affect Stocks, Bonds & Mortgages
Why a single rate decision ripples through bond prices, stock valuations, mortgages, and your savings account.
Inflation, Rate Hikes & Rate Cuts
Why the Fed raises rates to cool inflation and cuts them to support a weakening economy.
Understanding Fed Announcements
What gets released after an FOMC meeting, and how to read the words without treating them as a trading cue.
Course Summary
Review everything you learned and celebrate your progress.
Understand the most important force in markets.
Start with what the Federal Reserve actually is — then see how it sets interest rates and why those rates move your investments, one short lesson at a time.
Start the Course