What the Fed's Recent Rate Hike Means for Your Money
The move, the first since July 2023, reflects the central bank’s effort to curb inflation as borrowing costs remain elevated.
- On Wednesday, the Federal Reserve raised its benchmark interest rate by 0.25%, setting the target range at 3.75% to 4%.
- The central bank's first rate hike since July 2023 targets stubborn inflation that has remained above the Federal Reserve's 2% target for more than five years.
- Borrowing costs for credit cards, auto loans, and mortgages will rise, though economists expect consumers to maintain spending despite high prices and uncertainty.
- Higher borrowing costs are expected to cool economic activity as the Federal Reserve aims to encourage consumers to pull back on discretionary spending.
- Mortgage rates are unlikely to see immediate movement following the decision, though future trajectories will depend on long-term market expectations and Treasury yields.
21 Articles
21 Articles
Rate hike adds to inflation squeeze
The Federal Reserve’s first interest rate hike in more than three years could be especially costly for Black consumers, who are more likely to carry credit card balances and have less household wealth to fall back on when expenses rise. The Fed raised its benchmark interest rate by a quarter percentage point Wednesday, putting its […]
New York, U.S. President Donald Trump criticized the Federal Reserve Board (Fed), which he called “hostile” and “political,” for raising interest rates.
The repercussions of Federal Reserve Chairman Kevin Warsh's decision to raise interest rates continue. The bank, under the leadership of Warsh, whom US President Donald Trump nominated for the Fed chairmanship, raised interest rates for the first time since July 2023 with Wednesday's decision. The decision to raise the policy rate by 25 basis points to the 3.75-4 percent range was taken unanimously by all 12 members. Warsh stated, "The reality …
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