Share to ClassroomFed Raises Interest Rates
The Fed is the main bank in the US. On Wednesday, it raised interest rates. An interest rate is the cost of borrowing money. This is the first time in over three years. The rate is now 3.75% to 4%.
Prices in the US are going up fast. Oil and fuel cost more now. This is because of a war with Iran. The Fed wants prices to rise more slowly.
Now it costs more to borrow money. Loans for homes may cost more too. People with savings may get more money. The Fed may raise rates again this year.
