Video: Hear kids explain what Fed day is all about
The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for .
What is a Fed day?
“I don’t know that.”
“A Fed day is when a bunch of smart people come together to talk about interest rates.”
“The chairman of the Fed is Janet Yellen.”
“After a Fed day, interest rates might go up.”
“Because it costs more money for a bank to borrow money from another bank.”
“Sometimes interest rates go down.”
“I didn’t know that banks give money to other banks. That sounds silly!”
“You’ll pay more to borrow, but you’ll get more interest on your savings.”
“It might cost more money to buy a house.”
“It might cost you more to pay off your credit card.”
“It might cost more for a personal loan.”
“My mom owes me money, so I should raise my interest rates.”
“She better pay up!”
RATE SEARCH: Find the best mortgage rates available today!