The Federal Reserve raised interest rates by 75 basis points at the June Federal Open Market Committee (FOMC) policy meeting as the central bank tries to stop inflation from spiraling out of control.
Deutsche Bank analysts are already anticipating the rate-setting Committee to pull the trigger on a three-quarter-point increase at next month’s meeting, which could bring the Fed funds rate to around 2.3 percent.
With Fed Chair Jerome Powell and colleagues paving a path of rate normalization, what kind of impact will this have on American borrowers, savers, and prospective homeowners?
The U.S. central bank directly affects the prime rate—the base rate of how other interest rates are formulated—so when it is higher, consumers will endure greater borrowing costs. This can affect everything from personal loans to credit cards….