Federal Reserve Increases Interest Rate by Quarter Percentage Point

Why it matters locally: Florida's housing market and tourism industry, both sensitive to borrowing costs, could see impacts from the Federal Reserve's interest rate hike. Businesses and consumers across the state may face higher costs for loans and mortgages.

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.