What it is, why it matters, and who really sets it.

Interest rates influence nearly every financial decision, from what you earn on cash to what you pay on a mortgage and how stocks, bonds, real estate, and businesses are valued. But despite how often we hear about “the interest rate,” there is no single rate, and the Federal Reserve does not control all interest rates.

In Episode 42 of The Decision Dividend, Pat Collins and Marcus Schafer explain the risk-free rate, the forces that shape it, and what changes in interest rates actually mean for savers and borrowers.

You’ll learn:

• Why “the interest rate” is actually a curve with different rates for different time periods
• How the Federal Reserve and financial markets each influence interest rates
• How changing rates may affect your cash, debt, investments, taxes, and financial plan

Market rates and statistics are as of August 27, 2026.

Sources

1. Board of Governors of the Federal Reserve System, “15 Selected Interest Rates.”
2. Federal Reserve Bank of New York, “Monetary Policy Implementation.”
3. Eugene F. Fama, “Does the Fed Control Interest Rates?” The Review of Asset Pricing Studies, 2013. Fama, “Does the Fed Control Interest Rates?”
4. John H. Cochrane, “Who Is Walking Who?” 2015. Cochrane, “Who Is Walking Who?”
5. Dimensional Fund Advisors, “What Happens to Stocks When Interest Rates Change?”
6. Vanguard, “Why Higher Yields May Be Good for Many Retirement Investors,” 2023.
7. Federal Reserve H.15 and Federal Reserve Bank of New York for rates
8. Investment Company Institute [for money market fund assets] https://www.ici.org/research/stats/mmf
9. YCharts https://www.linkedin.com/posts/-justinbrown_investing-chartoftheweek-activity-7498762196001157120-vdPh?utm_source=share&utm_medium=member_desktop&rcm=ACoAADVDgmAB8c4Wr1FL_cn1hvA9192lEx_eUYQ

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Information contained herein has been obtained from sources considered reliable, but its accuracy and completeness are not guaranteed. It is not intended as the primary basis for financial planning or investment decisions and should not be construed as advice meeting the particular investment needs of any investor. This material has been prepared for information purposes only and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Past performance is no guarantee of future results.