Orbit comes from the Latin orbita, âcourse,â or âtrack.â The verb orbit is the act of revolving around another object, usually on a circular or elliptical course. Many planets, moons, stars, meteors spacecraft and other objects in outer space orbit around each other. Electrons also orbit around the nucleus of an atom.
Fed raises interest rates. America's first interest rate hike in nearly a decade is here. The Federal Reserve raised its key interest rate on Wednesday from a range of 0% to 0.25% to a range of 0.25% to 0.5%. The rate hike is a small one, but it will affect millions of Americans, including investors, home buyers and savers.
But smart borrowers watch the Fed's actions and statements for clues as to the general direction of rates. In mid-December, the Fed raised its benchmark federal funds rate from near zero to a range of 0.25% to 0.5%, signaling that rates might be on the rise in 2016. Borrowers shouldn't expect rates to shoot skyward. The Fed is more likely to move slowly, at least in the near term. Still, that expectation isn't a guarantee.