What happens when the Fed cuts interest rates and probabilities of future cuts?

The Federal Reserve just announced an emergency 50 basis point cut in the fed funds rate. What does cutting interest rates mean? What are the differences in the fed funds rate, discount rate, and IOER or interest on excess reserves? How does a fed rate adjustment effect my mortgage rate? Plus, how do they figure what the probabilities are that the Fed will move rates at future meetings?

What is the Fed Funds Rate?

What is the Discount Rate?

What is the IOER or interest on excess reserves?

What is the prime rate?

How does the Federal Reserve Fed funds rate affect mortgage rates on 30-year and 15-year terms?

How Treasury Bond Yields are linked to interest rates on mortgages

How interest rates affect the present value of future cash flows and earnings

Other ways the Fed can impact money supply such as altering bank reserve requirements

How to calculate the probability of a Fed interest rate change based on Fed Funds Futures

When does the fed meet and schedule?

Fed funds current target rate range

Mentioned in this Episode:

Federal Reserve Meeting Dates https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm

Federal Reserve Bank New York daily effective funds rate EFFR https://apps.newyorkfed.org/markets/autorates/fed%20funds

CME Fed Funds Rate Probability Tracking Tool https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html

Fed Funds Futures monthly prices https://www.cmegroup.com/trading/interest-rates/stir/30-day-federal-fund.html

Should I Pay off my mortgage early? https://podcasts.apple.com/us/podcast/should-i-payoff-my-mortgage-early-or-invest/id1432836154?i=1000467130109

Derek Moore's book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr

Contact Derek www.razorwealth.com