3 things to know about fed's rate hike, outlook

The Federal Reserve raised its benchmark interest rate Sept. 26, which serves as the baseline for many types of consumer debt and savings accounts and CD rates, according to CNBC.

Here are three things to know about the interest rate change and the federal government's economic outlook:

1. The Federal Open Market Committee increased the fed funds rate 25 basis points, pushing the rate to a range of 2 percent to 2.25 percent. It was last at this point in April 2008. The FOMC anticipates one more hike before the year ends, and three in 2019.

2. The rate hike marks the eighth increase since the Federal Reserve started normalizing the policy in 2015, according to CNBC. The change will be immediately noticeable in the prime rate and will increase credit card charges.

3. The committee members also estimated gross domestic product will rise 3.1 percent in 2018. That's an improvement from the committee's 2.8 percent prediction in June. Federal officials boosted its outlook for 2019 by 0.1 percentage points to 2.5 percent, and held its 2020 estimate at 2 percent.

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