The Federal Reserve maintained its benchmark interest rate on Oct. 28, keeping the federal funds rate target range at 3.75%–4% following September’s quarter-point increase. The Fed will continue to assess additional information as it works toward its 2% inflation goal. Benchmark rates can affect borrowing costs. If you’re thinking about applying for a loan or have existing variable-rate debt, it may be a good time to review your borrowing strategy and cash flow. Also consider the tax treatment: Individuals may be able to deduct interest, depending on the type of debt. Businesses can usually claim a tax deduction for interest expense up to applicable limits.
