Conn. (WTNH) — Another day, another increase on short-term borrowing rates. We’re Stretching Your Dollar with what the fed rate hike will mean for you.
Once again, and as expected, the Federal Reserve announced it’s raising its short-term borrowing rate another quarter of a percentage point. It’s good news if you consider it’s the central bank’s second consecutive time slowing the increase following several bigger hikes last year.
So, what does this decision mean for your money? It’ll impact you if you have any kind of loan with a variable rate like credit cards. Your interest on that debt is going higher.
If you’re in line to buy a car, new loans will have the higher rate, and mortgage rates will stay higher. Anyone who has borrowing to do for student loans will feel this, and if you have a private loan with a variable rate, you’ll see those payments increase too.
The increases are designed to cool the economy, but could drive consumers into a recession. You’re warned to pay close attention to your money and do what you can to keep borrowing in-check.
And it’s not expected to end here — the feds signaled more hikes are likely coming as it remains committed to cooling inflation.