Jessica Sain-Baird

Sep 18, 2024 | lendingtree.com | Jessica Sain-Baird

The Federal Reserve slashed the target federal funds rate at its meeting this week by half a percentage point. The rate range is now 4.75% to 5.00%. This is the first time the Fed has cut the target rate in over four years. How and why does the federal funds rate affect me? The federal funds rate doesn’t directly change the interest rates you receive on loans or bank accounts, but it does tend to affect them.