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 chair
The Fed will most likely hold interest rates steady, but here’s how it could still impact your wallet.
Jerome Powell Fed FOMC Decision Day
The Fed voted to leave interest rates alone for the second-straight meeting.
Homes in Chicago neighborhood
Two-thirds of economists surveyed say the U.S. central bank will increase borrowing costs again in 2019.
Aerial view of shipping port
From trade worries to market volatility, pay attention to these trends in the new year.
Chairman of the Federal Reserve nominee Jerome Powell is sworn in during his confirmation hearing before the Senate Banking, Housing and Urban Affairs Committee
Learn all about Jerome Powell, who is presiding over his first FOMC policy meeting.
Placeholder image
Bankrate delivers the latest news to you.
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