Fed Interest Rate Decision

Fed Interest Rate Decision: What It Means for You

The Federal Reserve has raised interest rates by 0.25%.

This is the first interest rate increase since 2018. The decision was made in an effort to combat rising inflation.

What does this mean for you?

Variable-rate loans

If you have a variable-rate loan, your interest rate will increase. This will increase your monthly payments.

Fixed-rate loans

If you have a fixed-rate loan, your interest rate will not change. However, if you are planning to refinance your loan, you may be able to get a lower interest rate.

Savings accounts

Interest rates on savings accounts may increase. This will increase the amount of money you earn on your savings.

Investments

Interest rate increases can affect the stock market. Stocks may decrease in value as interest rates increase.

What should you do?

If you are concerned about the impact of interest rate increases on your finances, you should talk to a financial advisor.

The Federal Reserve's decision to raise interest rates is a significant event. It is important to understand how this decision will affect you and your finances.