Investopedia had terms that stood out in 2022 and here's one we all heard often the term federal funds rate it refers to the target interest rate set by the Federal Open Market Committee (FOMC), and it’s the rate at which commercial banks borrow and lend their excess reserves to each other overnight. On June 15, 2022, the FOMC announced the federal funds rate would be going up by 75 basis points, the biggest hike since 1994. It raised the federal funds rate another 75 basis points three more times in 2022, and doesn’t appear to be finished. This rate-rising environment is new to many younger investors, who are now witnessing how the Fed sets monetary policy and how that impacts their own wallet. For more information go to yoursafemoneyshow.com.
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