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.
The fed funds rate is the interest rate for short-term loans from the Federal Reserve to the banks. As of May 2015, the Federal Reserve had been keeping the target rate at 0.25 percent since December 2008. When the fed funds rate rises, the prime rate rises with it. The prime rate can change from one week to the next, or it can remain the same for years. It all depends on the target federal funds rate set by the Federal Reserve, which in turn varies with the growth, or lack of growth, in the national economy.