Fed rate hike likely means more expensive credit cards and mortgages, but savers may rejoice

The briefing

The Federal Reserve raised its benchmark interest rate by a quarter-point to a range of 3.75% to 4.00% in an effort to combat persistent inflation. The first rate hike since 2023 will increase borrowing costs for homes, autos, and other purchases, while offering higher yields for savers. Consumer prices rose 3.4% in August, prompting the central bank's restrictive move.