An Examination Of The Federal Rate Hikes Impact On The Auto Industry
The US Federal Reserve Board raises interest rates in an effort to curb inflation and keep the economy stable. Recently, the agency announced its ninth consecutive increase in a span of one year to tackle rising prices. So, how do federal rate hikes play into the industry that Mercedes-Benz is in? Understanding Federal Rate Hikes A federal rate hike is a decision by the Federal Reserve Board to increase the federal funds rate. It is the interest rate at which banks lend money to each other overnight. When the federal funds rate is increased, it becomes more expensive for banks to borrow money, which in turn causes them to increase… Continue Reading »