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The Fed interest rate is the rate that depository institutions, such as banks and credit unions, lend money to other depository institutions overnight on an uncollaterized basis to meet their reserve requirements. There are many more minute details to this, which you might want to see at Investopedia. (especially the video, it explains stuff like how the Fed influences the Fed interest rate) This shows that the Fed views the US economy as expanding and is starting to increase the Fed interest rate which is likely to increase interest ......
It seems like this has been in the news for some time with people looking at the possibility of it happening and the potential results. But now it's happened as the Fed increased its federal funds target rate to 0.25%-0.50%, ending the period of near-zero interest rates. So, what does this mean for us?
