With the recent interest rate hikes and rumblings about inflation, you’ve probably been hearing a lot about The Federal Reserve — and all the jargon that comes with it.
The Federal Reserve’s monetary policy decisions affect consumers and businesses. The U.S. central bank’s actions impact the interest rates you pay on your home mortgage, credit card debt and other loans. Considering the effect the Federal Reserve’s stance has on the economy, its stand on interest rates tend to make headlines.
In case you have ever wondered what the Fed’s target interest rate is, or what a basis point is, here’s a breakdown of some of the Fed-related jargon that gets tossed around.
