1 Does the Federal Reserve set and manipulate interest rates?

First, the Fed does not directly determine the market base interest rate.

second, by influencing the capital cost of commercial banks, the Federal Reserve will actually form a strong regulation of market interest rates.

In theory, the Federal Reserve does not determine the market base interest rate, but it will determine the target interest rate, and then achieve this goal through open market operation and expected management.

So, from a practical point of view, the Fed can completely control interest rates.

2 will the rise of monetary fund cause the decline of bank deposits, which will further affect the future economic growth of China?

First of all, in absolute terms, the bank deposits of China residents are actually increasing.

On the other hand, after 212, China's capital market encourages innovation, especially this kind of internet financial innovation linked with science and technology, which is more easily recognized.

it's not surprising that we see the decline in the growth rate of deposits. In essence, it's the demand for wealth management of ordinary people and the gradual improvement of financial markets.

what are all kinds of financial products, such as goods base, bank wealth management products and bank deposits? It is a tool to realize the allocation of funds. Therefore, these funds, whether placed in banks, funds or trusts, are all for investment.

a tomato and an egg, whether you make tomato and egg soup or scrambled eggs with tomatoes, will not change the nature of these foods you eat at all. Similarly, whether residents' savings exist in the form of bank deposits or monetary funds does not affect the savings rate and investment rate.

will the 75% loan-to-deposit ratio restriction affect the process of money creation in China?

it will affect the process of bank's money creation, which is the most important weapon for modern government to regulate economic operation.

What this lesson has inspired me:

1 The Federal Reserve does not directly determine the market base interest rate, but indirectly affects the US market interest rate.

2 the monetary fund will not affect China's future economic growth.

3 loan-to-deposit ratio restrictions will affect the process of money creation in China.