What the Fed rate hike likely means for you
Summary
The Federal Reserve raised its main interest rate by 0.25 percentage points, the first increase since summer 2023. This change will make borrowing money more expensive but will help savers earn more interest on their deposits.Key Facts
- The Fed increased its benchmark interest rate by a quarter-point.
- This is the first rate hike since summer 2023.
- The new target rate range is 3.75% to 4.00%.
- Borrowing money for things like homes and cars will likely cost more.
- People who save money in banks may earn higher interest.
- The decision impacts loans, credit cards, and savings rates.
- The Fed adjusts rates to manage the economy’s growth and inflation.
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