Fed up with low interest rates
The Fed uses interest rates as a lever to grow the economy or put the brakes on it. If the economy is slowing, the Fed can lower interest rates to make it cheaper for businesses to borrow money, invest, and create jobs. Lower interest rates also tend to make consumers more eager to borrow and spend, which helps spur the economy. The new benchmark interest rate is a range of between 1% and 1.25%. Typically the Fed lowers rates to stimulate a slowing economy.