Chapter
Understanding the Relationship Between the Federal Reserve and the Stock Market
31:47 - 36:52 (05:04)
The Federal Reserve's actions, such as flooding the market with Treasury bills, can affect the stock market by making it more or less attractive to investors. However, too much money in the economy can lead to inflation and higher prices.
Clips
This podcast discusses how flooding the market with Treasury bills can drive investors to turn to the stock market for higher returns, as investing in bonds and securities won't yield as much profit.
31:47 - 33:20 (01:32)
Summary
This podcast discusses how flooding the market with Treasury bills can drive investors to turn to the stock market for higher returns, as investing in bonds and securities won't yield as much profit.
ChapterUnderstanding the Relationship Between the Federal Reserve and the Stock Market
EpisodeThe Scintillating World of Interest Rates
PodcastStuff You Should Know
The increase or decrease of the Fed's interest rate can affect the value of Treasury bills, make the stock market less attractive for investors, signal the economy's status, and influence the value of the dollar on the foreign exchange market and the American economy on the short term.
33:20 - 35:06 (01:45)
Summary
The increase or decrease of the Fed's interest rate can affect the value of Treasury bills, make the stock market less attractive for investors, signal the economy's status, and influence the value of the dollar on the foreign exchange market and the American economy on the short term.
ChapterUnderstanding the Relationship Between the Federal Reserve and the Stock Market
EpisodeThe Scintillating World of Interest Rates
PodcastStuff You Should Know
When there is an excess of money in the economy, prices increase rapidly due to high demand and low supply.
35:06 - 36:52 (01:46)
Summary
When there is an excess of money in the economy, prices increase rapidly due to high demand and low supply. This leads to people buying things sooner, driving demand even higher, and making saving money more valuable.