Remember, this is the annual interest rate but this is an overnight loan.

Traditionally, when the fed is more focused on short term interest rates, on overnight borrowing rates between banks, it will use these to buy shorter term debt that increases the amount of currency out there the amount of dollars out there, and so it will

let's say, let's do the yield curve for treasuries, maybe it looks something like this.

The meeting was put off until next Friday.

Money lenders are enjoying a profitable period.

When we started compounding, at first you owed me 2, just when

We adjourned the meeting until the following Friday.

I also want 100 of that.

Let's put off the meeting until next Friday.

And they want to do two things they want to inject this money into the banking system, which essentially will, hopefully, find its way into the economy, and they also want to lower the interest rate, especially the short term interest rate, this overnight borrowing.

lower the interest rate for people buying and selling dollars, or I should say borrowing and lending dollars, not buying and selling.

We borrowed money at high interest.

This is actually the power of compounding interest.

It'll have some interest rate, let me make something up, maybe it's a 7 loan.

Or what you think the real interest will be after you take into account people pre paying their mortgage, people defaulting on their mortgage, and other things

Maturity

That's 100 , right?

Im in too new things, cutting edge Hip hop. Experimental stuff Big still into the Golden Age.

We all have heard of it.

Let me draw this yield curve right over here, so this is maturity on the horizontal axis, and this is yield, and I'm gonna draw the yield curve for treasuries.

So EBlT, I kind of view that it goes backwards.

This is the 24th. I thought we had till the first.

Now it might make a little bit more sense if we go to the next period.

We borrowed money at high interest.

Before Interest and Taxes.

So now, by essentially printing money, buying debt, increasing the supply of money, two things happen.

Oh, my rate right.

And this is the same thing as what?

(Applause)

Friday the 13th.

Fri

Friday

Good news.

100 interest.

So we'll say Hey this is your cash for tonight, if you need it for the next night, we'll talk again.

What gets raised? A noun phrase, a vital role to announce here interest rates.

Got till tomorrow.

Interest on loans is high at present.

So let's say I'm charging r percent.

And of course the difference is the money that he had to spend on tax.

OK, so let's say I borrow 1,000.

Friday. Tomorrow.

It's always so difficult getting a table there, especially on Fridays

The price of money will go down, that's what the federal funds rate is, it's the target rate, so I'll say Fed Funds Rate, it's the target rate that the Fed sets for the overnight borrowing of reserves between banks, that's the Federal Funds Rate, and it will go down and that's how the Fed tries to set the Federal Funds Rate.

Deposits on long term leases.