Latest / Inflation Explained with Fexingo: CPI, Prices, and the Cost of Living for Everyday People
How the Fed Funds Rate Shapes Your Everyday Prices
The Fed has held interest rates at 3.63 percent since January 2025, but inflation is still running at 4.2 percent. Lucas and Luna explain why the fed funds rate isn't the only tool that matters anymore, and how a 40-basis-point gap between the effective rate and what banks actually pay is distorting credit card and auto loan costs. They look at the Interest on Reserve Balances rate, the SOFR, and why small businesses are now paying a premium that CPI doesn't capture.
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The skinny
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