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Why doesn't the FED split the interest rate into Regional Interest Rates?

With the FED wanting to do more as far as economic solutions and stimulus, why don't they unnationalize the base interest rate and allow fluctuation within its 12 districts?

It would cause some issues but would benefit by allowing certain regions to contract as other continue to grow. The one issue that might needs be solved would be to reallign the districts.

Your thoughts?

Update:

Come on. You're not thinking far enough out with this. Why do both of your answers have to do with how personal loans are affected? Maybe I just picked the wrong category...

2 Answers

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  • 1 decade ago
    Favorite Answer

    You are under the FRAUDULENT impression the Fed has ANY control over ANY rate beyond what THEY charge banks for loans. They have ZERO control over ACTUAL rates charged by ACTUAL lenders to ACTUAL borrowers.

  • ?
    Lv 7
    1 decade ago

    There is only one prime rate for lending to big banks. The money is supposed to then be loaned to community banks but under the original TARP it was not conditional on that. Obama's TARP does do that. But they cant force banks to lend. The community banks all over the U.S. do have their own interest rates.

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