Fed Chair Kevin Warsh thinks Fed officials have tipped their hand too much in the past about their future plans for interest rates. But he hasn’t been able to keep everybody else quiet.
The quarter-point increase lifts the Fed’s key rate to about 3.9% and could result in higher borrowing costs for mortgages, auto loans, and credit cards.
The Treasury wants to use short-term borrowing to finance the national debt. While short-term interest rates are usually lower than long-term rates, they’re also more volatile.