Jack McGillivray, Chapter 10, Question 6

Until reading this chapter I had known that the Fed controlled interest rates, but I had no clue how they did that or what interest rates they controlled. Previously when I heard the fed changed interest rates i assumed it was on anything with interest, however once i realized that there are thousands of different interest rates on thousands of investments and loans, Federal reserve interest rates really confused me. Now that i know that fed interest rate changes are just manipulation of bond currency exchange the concept makes much more sense to me. Its also really interesting the amount of calculation and guesswork involved in the process. Knowing how uncertain the process is also helps me to understand why during the latest recession there were so many ideas proposed, and why there were so many beliefs about what the effect of each of these ideas would be.