Money & Fireworks

The Federal Reserve raised interest rates again on Thursday. Before you snooze, realize it’s a decision from the most powerful bank in the world and well, it may affect your ability to buy a house or take out a loan.

Some handy factoids
· If you’re buying a house or taking out a loan, it now costs more, basically because it’s more expensive for banks to do business.

· It’s the 17th straight rate hike
The new rate is 5.25%, up from 1.5% in 2004. The Fed pushed rates to record lows after the tech bubble burst in 2001 and September 11 weighed on the economy, making it cheap to borrow money, thus fueling the recent housing boom.

· The Fed raises rates to slow the economy…
And also to ward off inflation (which also makes things cost more).

· Ben Bernanke is the new Fed chief
The Fed sets monetary policy for the

United States

. There are 12 Reserve Banks within the system, located across the country.

See? Painless!

Now, onto the fireworks
The Declaration of Independence turns 230 years old this year. Written by Thomas Jefferson and signed by the Continental Congress in 1776, it’s a document worth re-reading now and then: “We hold these truths to be self-evident, that all men are created equal…” Read the Declaration

Now go watch some fireworks!