Fed raises rates for first time since 2023. Here’s what it means for your wallet - The Spokesman-Review

The federal reserve (the U.S. central bank) hiked rates Sept. 16 for the first time since 2023 in a unanimous decision, hiking rates by a quarter point in line with Wall Street’s expectations. Additionally, the 10-year treasury yield, one of the most important global financial metrics, hit 5% on Monday, for the first time since 2023. Let’s strip out the financial jargon and see what local experts say it actually means for you – The Fed’s decisions affect car payments, credit card interest rates, mortgage payments and more. The interest rate that was raised was the benchmark federal funds rate, which is the rate that banks charge each other overnight. It was increased to a 3.75-4% range, the only interest rate the Fed controls directly.