# الفيدرالي

What does a reduction in federal interest mean?
When the U.S. Federal Reserve ( central bank ) lowers the interest rate, it makes the cost of borrowing between banks lower, which affects everything from mortgages to corporate loans.
Simply put: a reduction in Interest = money becomes cheaper in the economy. 💵
🎯 Why does the Fed lower Interest?
🔹 To stimulate the economy:
When the Federal Reserve notices a slowdown in growth or an increase in unemployment, it resorts to lowering interest rates to encourage investment and spending.
🔹 To support the labor market:
Low interest helps companies