05/04/2023

How a Fed Increase Could Affect Credit Card Debt, Auto Loans

The Federal Reserve has raised its key interest rate yet again

Once again, the Federal Reserve has raised its key interest rate in its drive to cool inflation, a move that will directly affect most Americans.

On Wednesday, the central bank boosted its benchmark rate by a quarter-point to 5.1 percent. Rates on credit cards, mortgages and auto loans, which have been surging since the Fed began raising rates last year, all stand to rise even more. The result will be more burdensome loan costs for both consumers and businesses.

On the other hand, many banks are now offering higher rates on savings accounts, giving savers the opportunity to earn more interest.

Please select this link to read the complete article from The Associated Press.