How the Fed's Smaller Rate Hike Could Affect Investors
Money is not a client of any investment adviser featured on this page. The information provided on this page is for educational purposes only and is not intended as investment advice. Money does not offer advisory services.
The Federal Reserve's battle with inflation continued Wednesday with an interest rate hike of 25 basis points (or 0.25%) and an indication that more increases are likely on the horizon.
The announcement was expected and smaller than the hikes investors have gotten used to recently. In December, the U.S. central bank raised rates by a half percentage point; the four hikes before that were by 75 basis points (0.75%). The latest increase brings the federal funds rate, the rate at which banks borrow money from each other overnight, to a target range of between 4.5% and 4.75%.
Here's what investors need to know.
