The Fed lowered the interest rate in July, September and October in an effort to calm recession fears on Wall Street and counter the negative impact of Trump’s trade war. The benchmark U.S. interest rate is just shy of 1.75 percent, down from nearly 2.5 percent a year ago.
A lower interest rate makes it cheaper to borrow money to buy a home and car or to start a business. It also means savers get less in monthly interest on the money they keep in savings accounts at banks. Many retirees have complained the Fed is hurting them by keeping rates down, but Fed Chair Jerome H. Powell has said his top goal is ensuring that the recovery, which is now in its 11th year, keeps going.
