What the Fed’s interest rate increase today means for you

Covering COVID-19 is a daily Poynter briefing of story ideas about the coronavirus and other timely topics for journalists, written by senior faculty Al Tompkins. Sign up here to have it delivered to your inbox every weekday morning.

Federal Reserve chairman Jerome Powell will ask his board to approve a quarter of a percent increase in the interest rate this afternoon. The Fed rate is near zero now. This will be the first increase since 2018. Some say it is long overdue and a step toward fighting inflation.

But you will feel the effect of this increase and the probable three or more increases to come this year.

Powell wanted a half percent increase, but the war in Ukraine will probably push the board toward a more measured approach.

When the Fed acts, or even talks about acting, the financial world reacts.  Already, credit card interest rates, car loans, business loans…