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The Fed's rate hike: What it means to you Jill On Money:
JILL ON MONEY
In a unanimous 12-0 decision, the
While the inflation rate has improved from the peak seen in the COVID reopening surge, it has remained stubbornly high, running between 3.4 and 3.7%, well above
While some members on the committee had previously voted for an increase, this time around, there was consensus that the economy, and specifically the labor market, was strong enough to absorb the action.
Economist
As always, Fed actions have winners and losers. Under the winning camp is the saver. You can still find online interest rates of about 4% for high-yield savings accounts, money market funds, and short-term CDs. If you are new to having extra money for your emergency reserve fund, this is your reminder to move the cash from your checking account, which is still earning peanuts.
Chief among the losers is borrowers, who will continue to struggle under the weight of higher interest rates. According to the most recent government report, average credit card rates are sitting around 21%, auto loans are around 7%, and personal loans are averaging 11.8%.
Higher rates, along with still elevated prices, have ca...