
How a Federal Reserve rate decision reaches the rest of the market
The policy rate is only the first link in a chain connecting credit, spending, bond yields and trading expectations.

The policy rate is only the first link in a chain connecting credit, spending, bond yields and trading expectations.

Disinflation means prices are climbing more slowly. It does not mean the price level has returned to where it started.

Payroll employment and the unemployment rate answer different questions, so a mixed report is not automatically a contradiction.

Real GDP measures production after adjusting for prices, but the mix of growth helps explain its economic meaning.

Fixed coupon payments, changing market rates and time to repayment explain the core bond-market relationship.

Exchange rates alter relative prices, while the dollar’s international role extends their effects beyond U.S. borders.