Share to ClassroomFed Raises Rates, First Since 2023
The Fed (America's main bank) raised interest rates on Wednesday. An interest rate is the cost of borrowing money. This is the first time in over three years. Its main rate is now between 3.75% and 4%. Fed boss Kevin Warsh says prices are rising too fast.
Prices in the US have gone up quickly for more than five years. In August, they were 3.4% higher than a year before. The war with Iran made oil and fuel more expensive. President Donald Trump wanted lower interest rates. He said the Fed's board was unfriendly.
Higher rates make it more expensive to borrow money. Credit cards and loans now cost more. Home loans already cost more, and they may go higher. Some buyers may pay hundreds of dollars more each month. But people with savings may get more money. The Fed may raise rates again this year.
