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What is the neutral rate of interest? The Fed's theoretical rate benchmark
The Federal Reserve, a government agency responsible for keeping the American economy stable, sets the federal funds rate. This is a range of interest rates that banks charge to lend money to one another overnight. Despite its specificity, the federal funds rate is used as a benchmark for nearly every other interest rate in the United States, including the rate you pay on your credit card debt, mortgage, and car loan, and the rate you earn on your high-yield savings account. [...]