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Ever wonder how the Fed's interest rate actually works? We've got answers

Business · en

Ever wonder how the Fed's interest rate actually works? We've got answers

NPR · Sep 19, 2026, 9:00 AM UTC

The Federal Reserve just raised interest rates this week for the first time this year. So how does it actually work? And what does it mean for the economy — and the rest of us? Here are some answers.