10 Reasons to Pay Attention to Federal Reserve Interest Rates
Posted in Banking • August 9, 2013  federal reserve interest
rates  According to Mark Koba, a CNBC.com senior editor, the
Federal Reserve, “arguably plays the most crucial role in the
U.S. economy,” because it ensures that “the U.S. has a sound
banking system and a healthy economy.” Chances are, you are
directly or indirectly impacted by the Fed’s decisions.  With
the Fed’s comprehensive reach, there are ample reasons why you
should care about Federal Reserve interest rates.  You are
Affected by Federal Reserve Interest Rates If:  1. You are
looking to take out a loan — any type of loan.  “When the Fed
raises the Federal Funds Rate, banks typically follow with an
increase in their prime rate,” said Danny L. Buck, president and
CEO of Lone Star Capital Bank. This increases borrowing interest
rates for all types of borrowing.  2. You don’t want your money
to lose value through inflation.  When the Fed lowers interest
rates, this action “reduces the