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OUR DISTRICT

SF FED BLOG

Watch FOMC Rewind: Here’s what the Fed’s
November Decision Means for You
November 18, 2020

The November Federal Open Market Committee meeting statement says the
Fed will continue to expand purchases of U.S. Treasury and mortgage-back
securities and expects to keep interest rates near zero. What does that mean for
you? Let’s rewind.

November 2020 FOMC decision

00:57

TRANSCRIPT
Sean: Hey Remy, what’s up with the Fed?
Remy: They just kept interest rates the same
Sean: Rates are super low now, right?
Remy: Yeah, they’re near 0% to help the economy recover from the pandemic
Sean: How does that help?
Remy: Low rates make it cost less to borrow money so businesses can find money
to get back on track and hire more workers
Sean: Rates have been low for a while, right? How long will this last?
Remy: Until there are enough jobs for anyone who wants to work, and until prices
start rising a bit faster (like in a healthy economy), and people are confident
that’ll continue

Sean: How else can the Fed help?
Remy: They’re also buying a lot of bonds to keep longer-term interest rates—like
mortgages—low
Sean: Great, thanks!
Remy: See ya!

You may also be interested in:
• FOMC Rewind: Fed Updates Long-run Employment and Inflation Goals

The views expressed here do not necessarily reflect the views of the
management of the Federal Reserve Bank of San Francisco or of the Board
of Governors of the Federal Reserve System.