Federal Reserve raises interest rates by quarter point to combat inflation
- Reports
- 3
- Developments
- 1
- Repetition
- 67%
New informationRepeats or wire copies
What happened
The Federal Reserve raised benchmark borrowing costs by a quarter of a percentage point to battle a monthslong surge of inflation. This action followed a period where a key long-term Treasury rate reached its highest level in nearly two decades. The hike in borrowing costs pushes up rates for loans like credit cards and mortgages.
From abcnews.com, wkjc.com
Why it matters
The increase in borrowing costs threatens to worsen budget constraints for shoppers dealing with price hikes for essentials. However, the hike directly benefits savers, who stand to gain from an uptick in the interest yielded by accounts held at banks.
From abcnews.com, wkjc.com
Who's involved
- FEDConducts monetary policy and raised interest rates to combat inflation.
- Jerome PowellServes as the formal Chair and leader of the Federal Reserve.
- Federal Open Market CommitteeThe mandated policy-setting committee through which the Federal Reserve executes monetary policy.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- VirginiaSpeculative
Local credit and funding costs might change in Virginia due to the Federal Reserve's policy.
- NexteraSpeculative
Nextera could face increased costs of capital and debt financing for large utility infrastructure projects.
- DominionSpeculative
Dominion may experience higher costs of capital and debt financing for large utility infrastructure projects.
- Newport News ShipbuildingSpeculative
Newport News Shipbuilding could see increased financing costs for massive, long-term government contracts and capital projects.
- NextEra EnergySpeculative
NextEra Energy might face higher costs of capital and debt financing for large utility infrastructure projects.
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The entities involved
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FED
business
Related events
- Fed policy impacts market data reported by S&P Capital IQ during the Jackson Hole gathering.
- An article published on the investing.com portal regarding current Federal Reserve policy.
- The FED monitors and influences US economic policy while Donald Trump is noted as a political figure.
- The President explained the policy actions taken by the Federal Reserve on September 25, 2026.
- FED, Citigroup, and Navy Federal Credit Union are providing expert commentary on national economic health and market expectations for Fed rate hikes.