The Federal Reserve raised interest rates by 75 basis points during its September Federal Open Market Committee (FOMC) policy meeting. After four previous increases, the benchmark fed funds rate now stands in the 3.00 percent to 3.25 target range. Economists are anticipating two more rate hikes to finish 2022, but the size might depend on upcoming economic data, including inflation and jobs.
While the Fed’s decisions have consequences for the broader financial markets, they might also have vast implications for household budgets across the country, be it credit cards or savings accounts.
Credit Cards and Personal Loans
The Fed directly influences the prime rate, which is the base rate of how other interest rates are created, whether it is a personal loan or a car loan….