|FED Chairman Jerome Powell (Photo: Reuters)
The Fed's target interest rate is set between 4.50% and 4.75%, the highest level since late 2007. It has raised interest rates eight times in a row since last March. This rate is applied to interbank overnight loans.
Although consumers won’t have to pay the rate, the Reserve’s move could still affect the interest rates on loans and savings. However, it could help cool down inflation.