Welcome to the Money Matters Minute.
Did The Federal Reserve just raise interest rates? Well, maybe… sort of.
For the first time in a decade, the central bank hiked its benchmark rate, the federal funds rate, by a quarter of a percentage point.
But before you get too excited, the new rate is still historically low.
In fact, the key rate has been so low for so long, that the Fed is still trying to figure out the best way to increase it.
To that end, the Fed is exercising caution by boosting rates slowly, in quarter-point increments, over time.
So, yes, interest rates went up, but it’s too soon to tell how much of an impact it’s going to have on things like mortgages and other loans.
That’s all for now. Tune in next time for more Money Matters minutes.