Federal Reserve raises interest rate to 3.75%-4%; impacts Arkansas borrowing costs
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
New informationRepeats or wire copies
What happened
The Federal Open Market Committee voted unanimously to raise the federal funds rate by a quarter percentage point, setting the target range to 3.75% to 4%. The Federal Reserve stated the rate increase is intended to help return inflation to its 2% goal.
From 4029tv.com, katv.com
Why it matters
The rate hike increases borrowing costs for businesses and consumers across the economy. This move was expected by some economists given current conditions, including higher input costs and strong job growth.
From 4029tv.com, katv.com
Who's involved
- FEDThe Federal Reserve that implemented the rate increase
- Federal Open Market CommitteeThe committee that voted to move the federal funds rate
- ArkansasThe state where the rate hike is expected to raise borrowing costs for consumers and businesses
- University of ArkansasThe university where the economist commenting on the impact is employed
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.
- ArkansasSpeculative
Farmers in Arkansas might face higher costs for short-term operating loans used to cover expenses like seed, fertilizer, and fuel.
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The entities involved
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FED
business
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Federal Open Market Committee
committee of the United States Federal Reserve
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Arkansas
state of the United States of America
Related events
- The Federal Open Market Committee's rate increase is currently having an impact on the interest rates associated with truck loans.
- Ryan Loy is an extension economist for the University of Arkansas.
- Fed policy is causing national housing sales data to be affected, with rate hikes pushing mortgage rates higher in Omaha.
- Expert analysis suggests that raising interest rates affects state borrowing costs in Illinois due to FED policy signals.
- The USDA has released reports detailing shifts in rice acreage within the state of Arkansas.