How can the fed control interest rates

4 days ago The Fed tries to keep the economy afloat by raising or lowering the cost of borrowing Why does the Fed raise or lower interest rates? But even though the Fed has little direct control over mortgage rates, both end up being  to keep the federal funds rate--the interest rate at which depository institutions to help control the federal funds rate and keep it in the target range set by the 

Discount rate and inflation relationship

In this paper, the real interest rate series is determined by empirically characterising the theoretical relationship between nominal interest rates and inflation known  HOMER calculates the annual real discount rate (also called the real interest rate or interest rate) from the "Nominal discount rate" and "Expected inflation rate"  discount rates for income taxes and inflation in a simple three-step process. A one-page The relationship between the before- and after-tax internal. rate of