Morning Business Report: The Federal Reserve raises interest rates
How most Americans will be impacted
The Federal Reserve has raised its key interest rate yet again in its drive to cool inflation, a move that will directly affect most Americans. Anyone borrowing money to make a large purchase, such as a home, car or large appliance, will likely take a hit. The new rate will also increase monthly payments and costs for any consumer who is already paying interest on credit card debt. The upside is that savings rates will go up a bit.
Stocks fell sharply again. While the rate increase was expected, some traders felt Chairman Jerome Powell seemed more nervous about the economy than he did at the last meeting. The banking crisis also played a role in the sell-off.
PacWest Bancorp shares tumbled following a report that the bank is weighing strategic options, including a potential sale.
Olive Garden’s owner will buy Ruth’s Hospitality Group, parent of Ruth Chris’s Steak House. Darden Restaurants’ all-cash deal for the fine-dining chain is valued at $715 million.
Google began rolling out support for passkeys, an alternative sign-in method for apps and websites. With passkeys, Google users can access their various accounts with a fingerprint, face scan, or pin.