askST: What is the Fed funds rate, and how does it impact you?

The US Federal Reserve on Wednesday raised interest rates by three-quarters of a percentage point. PHOTO: REUTERS
New: Gift this subscriber-only story to your friends and family

SINGAPORE – The US Federal Reserve has raised its interest rate by 75 basis points, or 0.75 percentage point, as it continues to tame surging inflation. The Straits Times examines why this matters.

Q: What are Fed interest rates, and why are they important?

Already a subscriber? 

Read the full story and more at $9.90/month

Get exclusive reports and insights with more than 500 subscriber-only articles every month

Unlock these benefits

  • All subscriber-only content on ST app and straitstimes.com

  • Easy access any time via ST app on 1 mobile device

  • E-paper with 2-week archive so you won't miss out on content that matters to you

Join ST's Telegram channel and get the latest breaking news delivered to you.