Federal Reserve Increases Interest Rate by Quarter Percentage Point

Why it matters locally: The Federal Reserve's interest rate hike will likely influence borrowing costs for Ohio businesses and consumers, potentially affecting loans for homes, cars, and business expansion across the state. This increase can also impact state and local government borrowing for infrastructure projects.

The Federal Reserve implemented a 0.25% increase in its benchmark interest rate. This action contrasts with calls from the US President for a reduction in interest rates. Jerome Powell, the current chair of the Federal Reserve, assumed his position after the President nominated him. The Federal Open Market Committee, which includes Powell, makes decisions regarding interest rate adjustments.