(WTNH) — A big decision is expected on Thursday from the U.S. Federal Reserve. For the third time in a row, the Reserve is raising interest rates by .75% in hopes of tamping down the inflation and high prices we’re paying.
The idea is that by slowing the economy down, inflation will ease so that people aren’t paying sky-high prices on everything from food to clothes.
So, how will the hike impact you?
You may notice a change in three key areas according to MSN. Perhaps the most painful is for anyone holding onto credit card debt. It will become more expensive, so pay close attention to your ARPs.
Also, any loans you have with adjustable rates including home equity lines of credit and adjustable rate mortgages.
This is also likely to be bad news for prospective buyers, who are already dealing with sharply higher mortgage rates compared to a year ago.
Some economists warn that a recession is likely as it will slow spending from consumers and businesses.
The Federal Reserve is also predicting that the unemployment rate which is now under 4% could raise as well, saying that it expects it to go up to 4.4% next year.