As the Federal Reserve raises its benchmark rate for the first time since 2023, Bobby Garon offers practical guidance for how the decision affects mortgages, savings, credit cards, and everyday financial planning.
NAPLES. Fla., Sept. 18, 2026 /PRNewswire/ — On Wednesday, September 16, the Federal Reserve raised its benchmark interest rate by 25 basis points, bringing the target range to 3.75% to 4%. The Federal Open Market Committee approved the move unanimously in a 12-0 vote, marking the central bank’s first rate increase since 2023. Naples, Florida-based finance and insurance professional Bobby Garon says the decision is already generating questions from clients about what it means for their own financial situations.
“I’ve had a handful of clients ask me the same question over the past two days: what does this actually mean for me,” said Bobby Garon. “The honest answer is that it depends on which side of borrowing and saving you’re sitting on. This isn’t a decision that affects everyone the same way, and that’s the part that tends to get lost in the headlines.”
The Fed’s decision came down largely to inflation. Officials pointed to price growth running hotter than the central bank’s target, driven in part by rising energy costs, and determined that a stable labor market could absorb a rate increase without significant risk to employment. The committee also signaled that another increase later this year remains on the table, a detail Garon says matters as much as the decision itself.
“Markets react not just to what the Fed does, but to what it signals is coming next,” Garon said. “That forward guidance is often more useful for planning purposes than the rate change itself.”
What This Means for Mortgages and Home Loans
Garon notes that anyone shopping for a mortgage or carrying a variable-rate loan will likely feel this decision most directly. Rate hikes typically push mortgage rates higher, though the connection isn’t always immediate or one-to-one. Adjustable-rate mortgages and home equity lines of credit tend to reset upward fairly quickly following a Fed move.
“If you’ve been sitting on the fence about refinancing, a rising rate environment usually means the cost of waiting goes up, not down,” Garon said.
Why Savers Actually Benefit
According to Garon, higher rates aren’t only bad news. Savings accounts, money market accounts, and CDs typically pay more when the Fed raises rates, which he says is an underappreciated part of the story.
“If you’ve had cash sitting in a checking account earning next to nothing, this is a reasonable moment to look at a high-yield savings account or a short-term CD ladder,” Garon said. He explored a related idea in why budgeting and financial planning go hand in hand, noting that small adjustments like this one can add up over time.
Credit Cards and Auto Loans Will Cost More
Credit card APRs are closely tied to the Fed’s benchmark rate, so cardholders carrying a balance should expect a modest increase on upcoming statements. New auto loans will likely see similar movement. Garon recommends treating this as a nudge to prioritize paying down revolving debt rather than a reason for alarm.
Garon’s Advice: Review Before You React
Garon’s overall guidance is that a single rate decision rarely calls for a dramatic change to someone’s financial plan, but it is a good moment for a quick review.
“Check whether your savings are earning a competitive rate, check whether your debt is costing you more than it should, and check whether a loan you’ve been putting off refinancing is still worth waiting on,” Garon said. He laid out a similar framework in Insurance Basics Everyone Should Understand, adding that the same logic of reviewing before reacting applies here.
“A rate hike isn’t a reason to panic,” Garon said. “It’s a reason to check in on a few specific numbers you may not have looked at in a while. The Fed has signaled more moves may be coming, so this is likely the first conversation about rates this year, not the last.”
About Bobby Garon
Bobby Garon is a finance and insurance professional based in Naples, Florida, where he lives with his wife and son. He holds FINRA Series 6, Series 63, and Securities Industry Essentials (SIE) licenses, along with Florida Life and Annuity and Property & Casualty insurance licenses. He writes about financial education, leadership, personal growth, family, and community involvement on his website bobbygaron.com, as well as on Substack and Medium.
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