by Breck Dumas at Fox Business
The Federal Reserve, as expected, raised interest rates by 25 basis points for the first time since late 2018. Policymakers also signaled the possibility of six more hikes this year as they seek to combat soaring inflation.
While the central bank’s actions are closely monitored by Wall Street, folks on Main Street will be impacted, too.
An increase in interest rates means higher borrowing costs, so consumers and businesses can expect to pay more for car loans, mortgages, and credit card balances. Those additional costs cause shifts in consumer behavior.
John Lonski, president of Thru the Cycle and former chief capital markets economist at Moody’s Analytics, says consumers might not feel the pain of an initial rate increase by the Fed, but they will certainly notice the hikes if they continue through 2022…
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