Home » General World News » The Fed’s latest rate hike will soon have an impact on your wallet (BAC, C, WFC, BBT, JPM)

The Fed’s latest rate hike will soon have an impact on your wallet (BAC, C, WFC, BBT, JPM)





Bernanke

Wednesday’s announcement that the Federal Reserve was lifting its fed funds rate for just the second time since the end of the Great Recession has already started shaking up global markets.

Less immediate is the impact it could have on your wallet.

Most simply, the fed funds rate determines the interest rate at which banks borrow money short-term.

This increase is then passed on to other borrowers, mostly consumers, through higher rates on things like credit card debt.

And this debt is based of the banks’ prime loan rate, the interest rate used as a starting point for non-mortgage loans.

The announcement of read more >>>

Source:: BusinessInsider.Com

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