The Fed is about to raise interest rates again — here's how it happens and why it matters

Mark Wilson/Getty; Samantha Lee/Business Insider

• The Federal Reserve on Wednesday is set to raise its benchmark interest rate for the seventh time since late-2015.
• The US central bank adjusts the interest rates that banks charge to borrow from one another, which is eventually passed on to consumers.
• Economists expect that this time, the Fed will make a slight tweak to how it usually raises rates.

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Banks give out money all the time — for a fee.

When we borrow and then pay back with interest, it's how banks make money.See the rest of the story at Business Insider

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See Also:

• GOLDMAN SACHS: Investors aren't positioned properly for the Fed's rate decision — here's a trade to take advantage of their negligence
• Jerome Powell needs to answer one key question as the Fed prepares to raise rates again
• BERNANKE: Trump's tax cuts are like 'Wile E. Coyote' and the economy's boost will fall off the cliff in 2020

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