To anyone who has ever had a credit card, borrowed money or deposited money in a savings account, you know firsthand how interest rates impact the amount of money you have at any given time. A somewhat complex system directs how interest rates are set at any point in time. If you’re interested in how federal interest rates work, this information will help you. How Do Interest Rates Work? Interest rates can be thought of as essentially the price of borrowing money. It is the amount charged by a lender for use of an asset, expressed as a percentage of the...
