How the Fed's Latest Interest Rate Hike Will Affect Your Wallet
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Oops, they did it again.
The Federal Reserve announced its fifth consecutive interest rate hike on Wednesday, bumping up the target federal funds rate by 0.75% to reach a range of 3% to 3.25% in its ongoing battle against inflation in the U.S. It hasn't been this high since 2008.
The Fed's September rate hike isn't a surprise. The nation's central banking system has been raising interest rates for months to try to decrease inflation, which it generally likes to see around 2% over the long run in order to promote a healthy economy. In August, inflation reached 8.3% before seasonal adjustment.
Inflation is so high due largely to the economy's strong pandemic recovery, snarls in the supply chain and Russia's invasion of Ukraine. But those factors — as well as moves by the Fed — can seem irrelevant to everyday Americans scrounging to pay for more expensive groceries and gas.
Here's what you need to know about Wednesday's announcement and how it will actually impact you.
Why did the Fed raise interest rates again?
