Will the FedFederal Reserve (the Fed). The central bank of the United States. One of its jobs is setting a key interest rate that affects loans and savings. lower interest ratesRate cut. When a central bank lowers its interest rate. Borrowing tends to get cheaper. by 0.5 points or more on Apr 28?

The short version

After its April 2027 meeting, the Federal Reserve announces whether it will change the interest rate banks charge each otherFederal funds rate. The interest rate banks charge each other for overnight loans. The Fed sets a target for it, and many other rates follow it.. Yes wins if: The Fed’s statement lowers the top of its target rangeTarget range. The Fed sets its rate as a range, such as 4.00% to 4.25%, instead of one number. by 0.5 percentage pointsPercentage point. The plain difference between two percents. Going from 4.00% to 4.25% is a change of 0.25 percentage points. (50 basis pointsBasis points (bps). A basis point is one hundredth of a percentage point. 25 basis points (25 bps) is 0.25 percentage points.) or more.

Possible results

• YesBorrowing tends to cost less, and savings tend to pay a bit less.5%

  What has to happen

  The Fed’s statement lowers the top of its target range by 0.5 percentage points (50 basis points) or more.

• NoThe Fed decides something else.95%

  What has to happen

  The statement shows a different change, or none.