The Federal Reserve Leaves Rates Unchanged

Higher rates have a significant impact on someone attempting to get a new loan for big purchases including a home or a car and especially affects credit card holders.

The Federal Reserve has decided to leave interest rates unchanged.

Fed officials have raised rates 11 times over the past year and a half. The goal was to push the key interest rate to a target range of 5.25% to 5.5% which marks the highest level in over 22 years.

The federal funds rate is set by the central bank and is the interest rate at which banks borrow and lend to one another overnight. Although that’s not the rate consumers pay, the Fed’s move still affects the borrowing and savings rates they see everyday. Higher rates have a significant impact on someone attempting to get a new loan for big purchases including a home or a car and especially affects credit card holders.

Wednesday’s decision is the second consecutive time that the agency is leaving rates as is.