The Fed interest rate

🇺🇸 This is like the "base" rate for borrowing money in the U.S. economy. Think of it as the price banks pay to borrow money from each other. When the Federal Reserve (or "Fed") raises or lowers this rate, it affects many things.

How it impacts everyday life:

💳 Loans and Credit Cards: When the rate goes up, it becomes more expensive for people to borrow money. So, if you're paying off a mortgage, car loan, or credit card, you'll notice higher interest payments. When the rate goes down, borrowing becomes cheaper.

💵 Savings: A higher Fed rate can mean that you earn more interest on your savings accounts. When it's lower, the interest you earn drops.

👨‍💻 Jobs and Businesses: A higher rate can make it costlier for businesses to borrow money to expand, leading them to slow hiring or reduce investment. Conversely, a lower rate makes it cheaper for businesses to borrow, encouraging growth and hiring.

💲 Inflation: The Fed often raises rates to slow down inflation (the rise in prices for goods and services). A lower rate can stimulate spending, but too much of that can cause prices to rise.

If the Fed wants to cool down a fast-moving economy and control inflation, it raises the rate. If it wants to encourage spending and boost the economy, it lowers the rate.

🏳️‍🌈 So, even though it seems abstract, this rate touches everything from what you pay for loans to how much you can save, and even your job prospects. The lower this rate, the greater the chance that capital will be invested in more dynamic and risky assets such as cryptocurrency.