The Federal Reserve is expected to raise short-term interest rates Wednesday. They’re likely to go up by one-quarter of a percent. This would be the third rate hike in the past 15 months. CBS News business analyst Jill Schlesinger joins “CBS This Morning” to discuss how the change will impact you if you’re saving, investing, using credit, or want to buy a home or car.
The Fed rate hike will increase the interest on money you save but also increase interest on credit cards and loans. The “Fed rate” is short for the federal funds rate. It is the interest rate for the federal reserve. You can watch an explanation below.