Fed Raises Interest Rates to Combat Inflation Ahead of Midterms

The Federal Reserve raised interest rates for the first time since July 2023, aiming to combat persistent inflation ahead of the midterm elections.

The Fed's benchmark rate increased by a quarter percentage point, setting it at a range of 3.75 percent to 4 percent.

According to Matt Schulz, LendingTree's chief consumer finance analyst, consumers may notice rising borrowing costs in the short-term, affecting credit card holders and prospective home and car buyers.