How The Fed’s Interest Rate Hike Affect Your Money
The Federal Reserve’s goal is to maintain a healthy economic climate in the United States. Disturbances like inflation and asset bubbles may get out of hand and undermine economic stability when the economy is booming and running hot.
When inflation threatens to spiral out of control, the Federal Reserve typically responds by raising interest rates to restore stability and slow inflation. This year the federal funds rate set by the Federal Reserve has been a hot topic of discussion and rightly so.