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The US interest rate hike in three years, which took place during its September meeting.
What is the Federal Reserve rate?
An interest rate indicates the cost for individuals and companies to borrow money—whether for mortgages, credit cards, or business loans—while also determining the returns earned on savings.
The Fed exerts influence over US interest rates by setting a target range for the federal funds rate, which serves as the benchmark for overnight lending between commercial banks.
How does the Fed rate affect mortgages, credit cards, and savings?
The Fed adjusts interest rates as a tool to manage inflation.
