How Fed policy affects your pocketbook
- The Federal Reserve's rate policies affect consumer loans.
- In some cases the impact is indirect.
- Knowing other factors affecting rates can save you money.
|Changes in the Fed's monetary policy have a heavy influence on fixed-rate mortgages ... |
|Because auto loans are fixed-rate, medium-term loans and the federal funds rate chiefly governs short-term interest rates ... |
|Certificates of deposit|
|For the most part, CD rates follow short-term interest rate movements from the Federal Open Market Committee ... |
|A popular form of second mortgage, the home equity line of credit, or HELOC, is directly affected by changes in the federal funds rate ... |
|Most credit cards have variable interest rates tied to an index, which is usually the prime rate ... |