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What happens to interest rates, financial markets, housing, and GDP if the Fed. lowers the Federal...

What happens to interest rates, financial markets, housing, and GDP if the Fed. lowers the Federal Funds interest rate

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when the federal funds rate is decreased by the Federal Reserve, that the interest rate in the economy is lowered because of changes into the interest rates which will be on the downside.

These are decreased by the Federal Reserve in order to counter slowdown in the demand, and it will help in stimulation of the demand and decrease in the federal funds interest rate will be meaning that financial markets will be taking it positively because it will mean that Federal Reserve is trying to provide businesses loan at a lower rate of interest through cutting of Federal funds rate.

When the federal funds rate will be lowered, it will be affecting the Gross Domestic product negatively because there would be lesser collection on the part of the bank as form of interest.

So these are the effects of Federal fund rate on different instrument of an economy.

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