Course Summary
Your progress in The Fed & Interest Rates
What You've Learned
You started with the big picture: the Federal Reserve is the United States' central bank, built to keep prices stable and employment strong. It isn't a regular bank and it isn't part of the everyday government budget — it's an independent institution whose decisions set the cost of money for the whole economy.
From there you saw the dual mandate — stable prices and maximum employment — and why those two goals can pull in opposite directions. That tension is the reason the Fed is constantly weighing trade-offs instead of following a simple rule.
The mechanics came next: the FOMC meets eight times a year and sets a target for the federal funds rate, the interest rate banks charge each other overnight. That single number ripples outward — into bond yields, savings rates, mortgage rates, and the way investors value stocks. When inflation runs hot the Fed tends to raise rates to cool things down; when growth weakens it tends to cut them.
Finally, you learned to read a Fed announcement — the statement, the 'dot plot,' and the press conference — as information about the economy, not a cue to act. Markets move on these releases, but this course is about understanding what the Fed is doing and why, never about timing trades around it.
Lessons in This Course
What Is the Federal Reserve?
What the Fed is, why a central bank exists, and how its independence works.
The Fed's Dual Mandate
Stable prices plus maximum employment — and why the two goals create constant trade-offs.
How the Fed Sets Interest Rates
How the FOMC sets the federal funds rate, in basis points, across eight meetings a year.
How Interest Rates Affect Stocks, Bonds & Mortgages
How one rate change flows into stocks, bonds, savings, and mortgages.
Inflation, Rate Hikes & Rate Cuts
Why the Fed hikes rates to fight inflation and cuts them to support growth.
Understanding Fed Announcements
How to read an FOMC statement and the dot plot — as education, not a signal.