How the Fed Funds Rate Shapes Every Loan You Take

Lucas and Luna break down the Fed funds rate and how its ripple effects hit your mortgage, car loan, and credit card. With the fed funds rate stuck at 3.64%, they explain why the rate hasn't moved despite inflation cooling—and what that means for your borrowing costs. They walk through the transmission mechanism: from the Fed's interest on reserve balances to your bank's prime rate to the monthly payment on a $40,000 car loan. No jargon, just the chain of cause and effect that explains why your credit card APR hasn't budged even as headline CPI inches lower. A practical look at the one number that touches almost every dollar you borrow. #FedFundsRate #InterestRates #MonetaryPolicy #BorrowingCosts #PersonalFinance #MortgageRates #CarLoans #CreditCards #FederalReserve #Economics #Inflation #CPI #PCE #PrimeRate #SOFR #IOER #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo