[{"data":1,"prerenderedAt":128},["ShallowReactive",2],{"article:\u002Farticles\u002Fwhat-the-fed-does-with-interest-rates":3},{"article":4,"related":113},{"id":5,"title":6,"author":7,"body":8,"category":99,"description":100,"extension":101,"kind":102,"meta":103,"navigation":104,"path":105,"publishedAt":106,"readingTime":107,"reviewer":108,"seo":109,"stem":110,"trending":104,"updatedAt":111,"__hash__":112},"articles\u002Farticles\u002Fwhat-the-fed-does-with-interest-rates.md","What the Fed Does With Interest Rates","Lynktor Editorial Team",{"type":9,"value":10,"toc":91},"minimark",[11,16,25,29,32,48,54,58,84,88],[12,13,15],"h2",{"id":14},"the-feds-two-goals","The Fed's two goals",[17,18,19,20,24],"p",{},"The U.S. Federal Reserve has a dual mandate from Congress: ",[21,22,23],"strong",{},"maximum employment and stable prices",". It defines stable prices as inflation of 2% a year over time.",[12,26,28],{"id":27},"the-tool-the-federal-funds-rate","The tool: the federal funds rate",[17,30,31],{},"The Fed sets a target range for the federal funds rate, the rate banks charge each other for overnight loans. Changes ripple outward to other borrowing costs.",[33,34,35,42],"ul",{},[36,37,38,41],"li",{},[21,39,40],{},"Raising rates"," makes borrowing more expensive. Spending and hiring cool, which helps bring inflation down.",[36,43,44,47],{},[21,45,46],{},"Cutting rates"," makes borrowing cheaper and supports growth when the economy weakens.",[49,50,51],"pull-quote",{},[17,52,53],{},"The Fed does not set your mortgage rate, but it pushes the whole curve.",[12,55,57],{"id":56},"how-it-reaches-you","How it reaches you",[33,59,60,66,72,78],{},[36,61,62,65],{},[21,63,64],{},"Savings accounts",": yields on high-yield savings tend to rise and fall with the policy rate.",[36,67,68,71],{},[21,69,70],{},"Credit cards",": most card rates are variable and follow the prime rate, which tracks the fed funds rate.",[36,73,74,77],{},[21,75,76],{},"Mortgages",": 30-year fixed rates follow longer-term Treasury yields, which react to expected Fed policy, not just today's rate.",[36,79,80,83],{},[21,81,82],{},"Stocks and bonds",": higher rates lower the present value of future cash flows, which can weigh on prices.",[12,85,87],{"id":86},"why-changes-take-time","Why changes take time",[17,89,90],{},"Rate changes affect the economy with a lag, often estimated at many months. That is why the Fed watches forecasts and data closely, and why it moves in steps.",{"title":92,"searchDepth":93,"depth":93,"links":94},"",2,[95,96,97,98],{"id":14,"depth":93,"text":15},{"id":27,"depth":93,"text":28},{"id":56,"depth":93,"text":57},{"id":86,"depth":93,"text":87},"economy","How the Federal Reserve's policy rate reaches your mortgage, your savings account, and the stock market.","md","article",{},true,"\u002Farticles\u002Fwhat-the-fed-does-with-interest-rates","2026-09-22",1,"Lynktor Research Desk",{"title":6,"description":100},"articles\u002Fwhat-the-fed-does-with-interest-rates","2026-10-20","vhvqtOETkMTy58CTOSilFZtTbNwsJ5S-MGlK2sPt-aw",[114,119,123],{"title":115,"description":116,"path":117,"category":118,"readingTime":107},"Why Starting Early Beats Investing More","Two savers put in the same $96,000. One ends up with more than twice as much. The difference is twenty years of compounding.","\u002Farticles\u002Fwhy-starting-early-beats-investing-more","investing",{"title":120,"description":121,"path":122,"category":118,"readingTime":107},"The Hidden Cost of a 1% Fund Fee","A fee that looks small takes nearly a quarter of a portfolio over thirty years. Here is how the math works.","\u002Farticles\u002Fthe-hidden-cost-of-fund-fees",{"title":124,"description":125,"path":126,"category":127,"readingTime":107},"Roth vs. Traditional IRA: Which Fits You?","Pay tax now or later? How the two IRA types differ, and the question that usually decides it.","\u002Farticles\u002Froth-vs-traditional-ira","retirement",1793226378858]