How the Federal Reserve impacts personal loans

Key takeaways The federal funds rate impacts how expensive it is for lenders to loan money, so consumer loan rates typically change when the federal funds rate changes. During the Federal Open Market Committee’s December meeting, the regulatory body announced it would drop the target rate by a quarter of a percentage point, its third such drop in a row. Current personal loan rate trends and the FOMC’s decision to hold rates steady both suggest there won’t be a major drop in personal loan interest rat ...