This recent Vanguard Podcast entitled, "​The Fed funds rate and what it means to you", explains the basics of the Fed funds rate and interest rates. It says, "The Federal Reserve has made several cuts to the federal funds rate since the summer of 2007. Joseph H. Davis, Ph.​D., Vanguard'​s chief economist, explains the Federal Reserve'​s purpose behind making these cuts, how these rate cuts impact other interest rates, and what it all means to investors." He also clarifies the relationship between short-​term and long-​term interest rates.

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