As the central bank of the U.S., the Federal Reserve, also known as the Fed, holds major sway over the cost of borrowing money. Although it doesn't directly set the interest rates on consumer loans, its adjustment of the federal funds rate — the rate banks charge each other for overnight lending — influences interest rates on loans across the economy. When the Fed increases or decreases the federal funds rate, you'll typically see the interest rates on personal, auto, and private student loans follow suit. ...