The Fed kept its key rate unchanged for the fourth straight meeting Wednesday, and said the economy is expanding at “a solid pace."

At 4.3%, the Fed's benchmark interest rate remains markedly higher than it was between 2008 and 2022, when the bank started to hike rates in response to rising prices. But it is roughly a percentage point lower than where it stood last year.

This month, it decided to keep the benchmark rate at the same range of 4.25% to 4.50%. When interest rates are high, like they are now, the banks have to pay more to borrow money, and so do you, for loans, mortgages, credit cards and more. At the same time, some banks offer better returns for the money and deposits you keep in their institutions.

Looming decisions about interest rates from the Federal Reserve