The Federal Reserve hasn't been this dramatic in decades. Today, Nicole breaks down everything you need to know about the Fed and exactly what it means for your wallet.
Nicole explains how the federal funds rate actually works, why it doesn't directly set your mortgage rate (but still absolutely affects it), and which accounts move immediately when the Fed acts. She unpacks the Fed's dual mandate, and shares her prediction for what Kevin Warsh will do.
Check out Nicole's financial literacy course The Money School
Find a Financial Advisor or Financial Coach from Nicole's company Private Wealth Collective
Watch video clips from the pod on Money Rehab's Instagram and Nicole Lapin's Instagram
Open a high yield savings account with SoFi at sofi.com/mnn
Here's what Nicole covers today:
00:00 Are You Ready for Some Money Rehab?
00:15 Why the Fed Is Bringing the Drama Right Now
00:57 What the Federal Funds Rate Actually Is
01:33 How Banks Borrow From Each Other Overnight
02:01 How the Fed Rate Affects You (And What It Doesn't)
02:21 High Yield Savings Accounts and the Fed
02:39 The Fed's Dual Mandate: Inflation vs. Unemployment
03:36 Where Inflation Stands Right Now
04:04 Inside the FOMC: How Rate Decisions Are Made
04:19 Meet the New Fed Chair: Kevin Warsh
04:49 Hawks vs. Doves Explained
05:08 Trump vs. The Fed: The Political Pressure
05:14 Austan Goolsbee Takes Us Inside the Room
07:30 Internal Dissent at the Fed: Not Seen in 30 Years
07:57 What to Expect from Markets on June 17th
08:53 Nicole's Prediction: Will Warsh Cut or Hold?
09:29 Tip You Can Take Straight to the Bank: High Yield Savings
All investing involves the risk of loss, including loss of principal. This podcast is for informational purposes only and does not constitute financial, investment, or legal advice. Always do your own research and consult a licensed financial advisor before making any financial decisions or investments.