Fed Interest Rate: How is going to affect your credit card loan or your mortgage?

Inflation is the main reason for the Federal Reserve's decision to raise the key interest rate that happens in their attempt to cool down the effects of inflation. This will inevitably affect every single tax paying American, and the ones who don't pay taxes as well. Last Wednesday, the Central Bank's benchmark was boosted once again by a quarter-point to 5.1%. All rates on credit cards, mortgages, and auto loans stand to rise even more than they already have. All of these have also been surging since the Fed started raising rates during 2022. As a result, any loan costs for consumers and businesses will be an even bigger burden than they were.

Is there an upside to higher Fed Interest Rates?

Many banks are starting to offer higher rates on savings accounts, this grants savers the chance to earn more interest. Despite this, all of the country's leading experts in economics are worried that the Fed's streak of 10 rate hikes since March 2022 may eventually cause the economy to either slow too much or flat out cause a recession. Imagine a recession right about now, when the world is in such major turmoil amid all the conflicts in Eastern Europe and South East Asia. No American citizen would be able to withstand this and everything would be chaos on this side of the world. But let's find out what is causing these rate increases, shall we? To continue reading the rest of the article, please click on the source link below: https://www.marca.com/en/lifestyle/us-news/personal-finance/2023/05/05/64551aa446163f5c9f8b45b6.html