Fed rate hike will likely push borrowing costs on credit cards, mortgages
WASHINGTON — The Federal Reserve just raised the cost of money — bad news for borrowers, good news for savers. The Fed increased its benchmark interest rate Wednesday by a quarter-point, the first rate hike since the summer of 2023. The hike will likely make it even costlier to borrow for homes, autos and other purchases. But if you've been socking money away, you’ll probably earn a bit more…
On Wednesday, the Federal Reserve raised the cost of borrowing by a quarter-point, marking the first such increase since summer 2023. This move, aimed at curbing inflation that has remained above the Fed's 2 percent target for over five years, is expected to make mortgages, credit card debt, and other loans more expensive. Despite the higher borrowing costs, savers can anticipate earning slightly more interest on their savings.
The Fed's target interest rate now spans 3.75 percent to 4.00 percent. The hike is designed to cool the economy by reducing demand for goods and services, thereby alleviating upward pressure on prices.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- US Fed Rate Hike: Why Wall Street expects more hikes and what it means for stocks hindustantimes.com
- A Fed rate hike sends the Loonie to a six-week low fxstreet.com
- Fed rate hike will likely push borrowing costs on credit cards, mortgages koreatimes.co.kr
- US stock market: Nasdaq, S&P 500 climb ahead of keenly awaited Fed decision business-standard.com
- Fed hikes main interest rate by quarter point, citing stubborn inflation cfodive.com
- Robinhood traders beef up stock buys in run-up to Fed decision seekingalpha.com
