NPR September 19, 2026 • 09:00

Ever wonder how the Fed's interest rate actually works? We've got answers - npr.org

By Rafael Nam

Ever wonder how the Fed's interest rate actually works? We've got answers - npr.org

The Federal Reserve just raised interest rates this week for the first time this year. So how does it actually work? And what does it mean for the economy — and the rest of us? Here are some answers.

It may be the most important tool in the Federal Reserve's toolkit: the interest rate.
And on Wednesday, the Fed wielded it for the first time this year, raising rates by a quarter percentage point … [+5343 chars]

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