How To Guide For: A Look At The Official 2016 Fed Interest Rate Hike
Today The Federal Reserve increased its key interest rate by 0.25%. Fed officials raised its target for short-term interest rates by 0.25 percentage points to a range of 0.50% and 0.75%. The Fed's move, only the second rate hike in the past decade. Higher interest rates make borrowing more expensive, which can slow corporate profits and economic growth, but one of the worst-case scenarios for the economy would be if inflation were to race higher because the Federal Reserve was too slow to raise rates. The Fed's action should have little effect on mortgages or auto and student loans. The central bank doesn't directly affect those rates, at least not in the short run. But rates on some other loans -- notably credit cards, home equity loans and adjustable-rate mortgages -- will likely rise soon. Those rates are based on benchmarks like banks' prime rate, which moves in tandem with the Fed's key rate. To get more in depth information on the 2016 Fed Interest Rate hike click on the pictures below to read the articles.