How does the federal reserve really influence the interest rates and cause them to go up and down?
Also when the federal reserve sells securities they take money out of the economy because banks buy the securitie.s But my question is what kind of securities are they and what do the banks get from buying them. What are the incentive to buy the securities from the Fed. And what does the federal reserve do with the money they receive from the banks that they take out of the economy. Won't they owe the banks interest of the securities they sold just like when a bank issues bonds the fed gives them money but they have to pay the money back with interest to the fed.