Fed raises interest in its highest rate increase since 1994
(WVVA) - The federal interest rate has jumped .75%. It’s the highest rate hike since 1994. It’s a drastic step to dial back on the highest inflation rate in 40 years which is showing no signs of slowing down.
Executive Director of the Development Authority of Mercer County John O’Neal said it’s going to cost more to borrow. If you have debts, the interest on those loans may rise to match what the Fed is doing.
Credit consumers will be bearing the brunt of the economic blow in the short term. Experts say prices and interest rates will come closer to normal come 2023.
Browning said the Fed is trying to pump the brakes on the economy in order to make the interest rate hike more manageable.
Until Inflation and the federal interest rates get back to normal, experts suggest putting off larger purchases.
federal reserve Chairman Jerome Powell said that another .75% rate increase is on the table in June. However, he doesn’t believe high-interest hikes will be common in the future.
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