Latest / Inflation Explained with Fexingo: CPI, Prices, and the Cost of Living for Everyday People
Why the Fed Funds Rate Matters for Your Borrowing Costs
In this episode, Lucas and Luna unpack the Federal Reserve's current stance as the effective federal funds rate holds at 3.63 percent and inflation cools unevenly. They explain why the Fed's key rate still drives your credit card, auto loan, and mortgage even as CPI shows only modest monthly gains. Through a concrete example of a $30,000 car loan, they show how a quarter-point difference in the fed funds rate translates into real dollars. They also discuss the subtle divergence between CPI and PCE inflation, and what the recent rally in gold might signal about market expectations…
The skinny
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