Fed raises rates: What it means for your credit cards, mortgages, savings accounts and auto loans
The Fed's quarter-point rate hike will impact a range of consumer borrowing and savings costs, including mortgages, credit cards, car loans and deposit rates.
The Japanese Yen has experienced a partial retreat from its rally following the Federal Reserve's interest rate hike. USD/JPY has been climbing for three consecutive days, with Wednesday's gain being the most significant. The currency is now trading just under 156.50, indicating a halfway point between its September low near 153.00 and the start of the month at 160.00.
Japan's policy rate is now 1.25%, the highest since 1995, following an expected increase at 1.48% by December and 1.85% by mid-2027. In contrast, the Fed is projected to reach 4.1% by year-end, with no cuts anticipated before then. The widening gap between the two central banks has contributed to the Yen's decline, meaning a rally of about 4% in the first half of September has been largely undone.
The Bank of Japan's policy decision remains crucial for the Yen's value, as it directly influences the currency through its monetary policy stance.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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