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It is important to note that the early interest rates quoted here were unpredictable money market rates of interest because a fluctuating money economy existed in those ancient times (Gasha et al., 2010). In such kind of an economy, daily bargaining among merchants and traders for credit at a price existed. In addition, up to recently the American interest rates fluctuated very sluggishly whereby a 6 percent tradition lasted for at least two centuries. Moreover, usury limits generally lasted for a long time untouched until in the 1960s when the bank loan rates were removed from money market centers and from big businesses that were relatively stable for a long period (Medeiros & Waldo, 2011). Some of the judgments done by the Board include changes in discount rates, which depend on the recommendations presented by one or more regional Federal Reserve Banks. Likewise, the Federal Open Market Committee makes decisions that pertain to open market operations, including the desired levels of central bank money or the desired federal funds market rate.
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