Which statutory body regulates the interest rates charged by lenders?

The Federal Reserve is the statutory body responsible for regulating interest rates charged by lenders. It influences monetary policy by setting the federal funds rate, which is the interest rate at which banks lend to each other overnight. This rate serves as a benchmark for various interest rates across the economy, affecting everything from mortgage rates to credit card interest charges.

Through its monetary policy tools, the Federal Reserve is able to influence the money supply and overall economic activity, thereby impacting interest rates. When the Federal Reserve adjusts the federal funds rate, it affects the rates at which financial institutions can borrow money and, consequently, the rates they charge consumers.

While other entities like the Consumer Financial Protection Bureau oversee consumer protection laws and the Office of the Comptroller of the Currency supervises national banks, they do not have the primary authority to set or directly regulate interest rates. Similarly, State Banking Authorities focus on state-chartered financial institutions and consumer protections at the state level but do not set interest rates. Thus, the Federal Reserve plays a crucial role in determining the landscape of interest rates in the lending market.