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 consumers and businesses in Minnesota, potentially affecting everything from mortgage rates to business loans across the state's diverse economy.

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.