The Fed raised rates again today - the 10th hike in this current cycle.
Just 13 months ago the Fed funds range was 0.00%-0.25%; with today’s hike, it is now 5.00%-5.25%.
The Fed funds rate is one of the primary monetary policy tools. By raising this rate, the Fed is slowing a heated economy by indirectly influencing consumer and business borrowing rates.
In this episode of the Financial Purpose Podcast, I’ll explain at a high level what the Fed funds rate is, how it works, and what it could mean for the economy.
