The Federal Reserve is expected to raise interest rates on Wednesday in an effort to try to help bring runaway inflation under control, but the move could make some things more expensive.
If you have variable interest rates for your mortgage, car payments or student loans, you may want to consider refinancing and getting a fixed rate.
The interest rate is expected to go up by about a quarter point later on Wednesday. This will have minimal impact at first, but this is expected to be the first of many rate hikes over the next year or two.
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The Federal Reserve is doing this to try and get inflation under control. Inflation is at a 40-year high driven by post-pandemic consumer demand, supply chain problems extending back to China and skyrocketing gas prices.
Experts suggest you pay off any credit card debt you may have now and consider changing your future buying habits.
“In the near term, there's not very much we can do other than switch our allocations of what we purchase. And we'll purchase those things that are more of a necessity or requirement and may have to trade off some of those luxury items or maybe even reassess and evaluate our vacation plans," said University of New Haven Economics and Business professor Brian Marks.
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This is the first interest rate hike we've seen since 2018.
