They lower rates to "heat" things up, encouraging people to spend and businesses to invest. The Bottom Line
They raise rates to "cool" things down by making borrowing expensive, which slows spending. When Do Interest Rates Matter?
Interest rates matter most during . Whether you are planning a major purchase, looking to maximize your savings, or rebalancing your 401(k), keeping an eye on the "price of money" helps you stay ahead of the curve rather than reacting to it. They lower rates to "heat" things up, encouraging