What the Fed interest rate hike likely means for borrowers and savers
Reserve just raised the cost of money — bad news for borrowers, good news for savers. Wednesday by a quarter-point, the first rate hike since the summer of 2023.
Useful takeaways from this story.
Reserve just raised the cost of money — bad news for borrowers, good news for savers.
Wednesday by a quarter-point, the first rate hike since the summer of 2023.
The hike will likely make it even costlier to borrow for homes, autos and other purchases.
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The useful part
Reserve just raised the cost of money — bad news for borrowers, good news for savers. Wednesday by a quarter-point, the first rate hike since the summer of 2023. The hike will likely make it even costlier to borrow for homes, autos and other purchases.
How it works
- If you've been socking money away, you'll probably earn a bit more interest on your savings.
- Kevin Warsh, <a href="https://www.nbcdfw.com/news/national-international/senate-confirms-trump-pick...
Details worth keeping
The increase boosts the Fed's target rate to a range of 3.75% to 4.00%. Inflation has remained above the Fed's 2% target for more than five years. The Fed's goal is to slow consumer and business spending by raising the cost of borrowing, thereby reducing demand for homes, cars and other goods and services, eventually cooling the economy and reducing upward pressure on prices.
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