Interest rates have a substantial effect on our economy. CNBC gives an overview of how the United States Federal Reserve System impacts the global economy. The Federal Reserve System’s management of interest rates influences financial conditions within the United States and can affect other central banks.
The United States Federal Reserve System is the top central bank by assets with over $7.1 trillion US dollars. That is over a trillion US dollars above second place People’s Bank of China and well over 1.5 trillion US dollars above third place Bank of Japan.
CNBC covers economic tightening, the carry trade, the world’s lender of last resort, and other currencies. CNBC explains how these pieces of the global economy are intertwined, connecting to national currencies, and their impact. It is not hard to see how everything the United States Federal Reserve System does impacts the global economy.
