Definition: Federal Reserve Rate - Examples & Advice | Bolder Money

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Definition

The interest rate set by the U.S. Federal Reserve, which influences borrowing costs throughout the economy.

What to consider

Monitor the Fed rate to understand its impact on borrowing costs.
Consider how changes might affect your mortgage and loans.
Stay updated on economic news for timely adjustments.

Real world scenarios

When the Federal Reserve rate dropped, it led to lower interest rates on loans, making it a good time for families like the Johnsons to refinance their mortgage.

Related terms

Investments & Retirement

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