Fed Raises Interest Rates Again — Here’s How It Affects Your Wallet

The Federal Open Market Committee (FOMC) announced Wednesday that it is raising the federal funds rate by 75 basis points, bringing the target range to 2.25% to 2.5%. This marks the fourth rate hike of this year.

The Federal Reserve previously raised interest rates by 75 basis points in June, marking the largest rate hike since 1994. It also raised interest rates by 50 basis points in May and by 25 basis points in March. And more rate hikes from the central bank are likely on the horizon.

“Recent indicators of spending and production have softened,” the Federal Reserve said in its statement. “Nonetheless, job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures.”

If you want to take advantage of interest rates before they rise further, you could consider taking out a personal loan to help pay down high-interest debt. Visit Credible to find your personalized interest rate without affecting your credit score. . .

Inflation surged in June to a new 40-year high, marking the fifth time it’s broken that record this year. Because inflation remains high, the Federal Reserve will likely continue raising rates in an attempt to bring it back down. (Read more from “Fed Raises Interest Rates Again — Here’s How It Affects Your Wallet” HERE)

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