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

A Sorry we're closed sign hands in a shop window
With the market awash with cash, stocks are rising regardless of the fundamentals.
Capitol Hill in Washington, D.C.
A long road likely lies ahead for the economy. What stimulus might we see to help a return to normal?
The Fed will turn to new tactics that include capping yields and expanding its balance sheet.
Grocery store shopper with mask
Forecasts were wide-ranging when it comes to predicting how much damage the pandemic caused.
A sign stating that job placement program is closed during coronavirus pandemic.
Joblessness has surged to catastrophic levels not seen for nearly a century.
A man wearing a mask walks past the U.S. Federal Reserve building in Washington D.C.
One of the Fed’s greatest fears is a slow and grueling economic recovery.
Federal Reserve Chairman Jerome Powell talks to reporters at press conference
The coronavirus pandemic has brought the U.S. economy to its knees.
A front view of the Federal Reserve Bank
Consumers get more access to their savings at a time when they may urgently need it.
Jerome Powell speaking. A now hiring banner in the background.
Behind the slowing economy is a Fed determined to defeat red-hot inflation.
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.
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