Fed raises rates: What it means for your credit cards, mortgages, savings accounts and auto loans

The Federal Reserve raised its benchmark interest rate at the conclusion of its September meeting after consumer prices rose again in August amid the war with Iran — and despite continued pressure by President Donald Trump to bring rates down. In an effort to tame inflation , the central bank's Federal Open Market Committee, led by Chairman Kevin Warsh , raised the federal funds rate by one-quarter percentage point to a target range of 3.75% to 4.0%. The move is expected to ripple across the economy, with consequences for everything from credit cards and car loans to savings accounts. The federal funds rate, which is set by the U.S. central bank, is the interest rate at which banks borrow and lend to one another overnight.