Skip to Main Content

The Federal Reserve and Your Money

The Fed just cut interest rates for the first time since 2020. Here are the most important steps you should take with your wallet.

The latest on the Fed from Bankrate’s experts

“The Fed was behind the curve when raising interest rates to corral inflation and the lesson appears to have been learned. By making a larger half-point interest rate cut right from the get-go, the Fed is taking out some insurance against being behind the curve again.”

– Greg McBride, CFA

Fed Lowers Interest Rates With Surprising Half-Point Cut

In a more aggressive move than expected, the Federal Open Market Committee (FOMC) cut their benchmark borrowing rate by half of a percentage point, bringing the key federal funds rate to a new target range of 4.75-5 percent. In the weeks leading up to the meeting, economists thought the Fed would stick with a more modest quarter-point hike, even as investors upped their bets on the bigger move, according to CME Group’s FedWatch tool.
Read More

Recent interest rate trends

Every time the Federal Reserve adjusts interest rates, borrowing and savings rates move in lockstep. Compare Bankrate data to see how the latest Fed decision is impacting rates on key consumer products.

Experts in all things finance

Our expert reporters and editors bring the news and analysis you need—backed by data and firsthand experience.

About Bankrate
Greg McBride

Greg McBride, CFA Arrow Right Icon

Chief Financial Analyst

Sarah Foster

Sarah Foster Arrow Right Icon

Principal U.S. Economy Reporter

Mark Hamrick

Mark Hamrick Arrow Right Icon

Senior Economic Analyst

Latest articles

Federal Reserve Chairman Jerome Powell speaks to reporters at a post-meeting press conference.
The Fed is pledging to keep aggressively supporting the economy, even after the pandemic officially ends.
Federal Reserve Chairman Jerome Powell speaks at a testimony before Congress
Here’s how this unconventional policy works to try and keep yields below a certain level.
Federal Reserve Chair Jerome Powell speaks at post-meeting press conference
For consumers, the pros and faults of today’s low-rate world will prevail for months, if not years, to come.
Federal Reserve Chairman Jerome Powell speaks at post-meeting press conference.
The economy is nowhere close to being out of the woods.
Federal Reserve Chairman Jerome Powell speaks at post-meeting press conference
The Fed has more in its back pocket than just cutting interest rates.
Federal Reserve Chairman Jerome Powell speaks at a press conference
The Fed will continue to stay on the sidelines when it comes to rates.
A voter casts his ballot.
Here’s a look at what a number of popular banks are doing.
young man falling out of the sky along with various household items and cash
You might not feel better about inflation because prices are still up post-pandemic.
Woman reaching in to the air for cash
Prices rise and fall all the time in the U.S. economy. It’s not always inflation.
Illustration of Fed Chair Jerome Powell
Economists see a slower job market in the year ahead but recession odds remain low.
Fed Chair Jerome Powell speaks during a news conference
Fed officials are trying to prevent an economic slowdown from getting worse.
Illustration of Fed Chair Jerome Powell
Tune in to Bankrate’s live coverage of the Fed’s first rate cut since 2020.
Federal Reserve Eccles Building illustration
The key benchmark has been as high as 20 percent — and as low as 0 percent.
Fed Chair Powell Holds News Conference Following FOMC Rate Decision
This Fed communication tool is important, but be cautious when interpreting it.
Fed Chair Jerome Powell speaks during a Senate Banking, Housing, and Urban Affairs Committee hearing.
Rate cuts mark a new era for the Fed. Here’s what you should do as a consumer.
young man falling out of the sky along with various household items and cash
You might not feel better about inflation because prices are still up post-pandemic.
Illustration of Fed Chair Jerome Powell
Economists see a slower job market in the year ahead but recession odds remain low.
Easy mornings and working from home for this couple
Savings yields topping inflation could let you hold onto your purchasing power.
Fed Chair Jerome Powell speaks during a news conference
Fed officials are trying to prevent an economic slowdown from getting worse.
Illustration of Fed Chair Jerome Powell
Tune in to Bankrate’s live coverage of the Fed’s first rate cut since 2020.
Women using digital tablet to check her finances at home office
For savers, here’s what to consider when the Fed raises interest rates.
Federal Reserve Eccles Building illustration
The key benchmark has been as high as 20 percent — and as low as 0 percent.
Fed chair Jerome Powell walks into a conference
The Federal Reserve announced that it’s lowering interest rates following its September 17-18 meeting.
The trusted provider of accurate rates and financial information
Wall Street Journal
Usa Today
New York Times
Cnn
Bloomberg
Abc