American Family Funding, a mortgage lender in Santa Clarita, is explaining the recent drop in the federal fund rate to almost zero, along with two other changes made by the Federal Reserve.
When the coronavirus pandemic began ramping up in the United States in March, the Federal Reserve reduced the federal fund rate to between zero and a quarter percent, according to Fred Arnold, mortgage advisor from American Family Funding.
Arnold explained that the federal fund rate is the rate in which the Federal Reserve lends money to financial institutions, which was likely lowered in response to the panic response seen nationwide at the start of the coronavirus outbreak.
“I think the brilliance behind that was, what if everybody goes (and) instead of buying toilet
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