If you’ve ever borrowed money or opened a savings account, then the Federal Reserve matters to you.
That rate, called the fed funds rate, serves as a benchmark for basically every interest rate in the US: government borrowing rates, mortgage rates, credit-card rates, savings-account yields, and so on.
The Fed uses it as a way to accelerate, or slow, economic growth. The rate is rising because the job market is relatively strong and the central bank doesn’t want prices rising too fast. Making it costlier to borrow will eventually slow spending by companies and consumers alike.
So, even if you’re not a titan of finance, the Fed’s interest-rate decision could still affect you if you’re planning to buy a house or save for retirement.