12 People Just Made Your Loans More Expensive. Here's Why

Twelve people sat down at a table, voted, and within weeks credit cards and car loans got more expensive. Who are they, and why are they allowed to do that? In this video Finn explains, in plain language, what an interest rate really is, what the Federal Reserve actually controls (just one number), how that number reaches your credit card, your car loan and your mortgage, and why making money more expensive is supposed to slow prices down. Chapters: 0:00 Twelve people and one vote 0:30 Why the Fed stepped in 0:55 Money has a price 1:22 Who sets the price: the Fed 1:54 How one number reaches your loans 2:33 The brake pedal: why raise rates on purpose 3:08 The cost of the brake: jobs 3:39 Why it works slowly 3:58 Who wins and who loses 4:17 What happens next Previous video: Why Prices Never Go Back Down (Inflation Explained) Finnomics: money, explained simply. This video is for education only and is not financial advice. #interestrates #federalreserve #economy #inflation #money