Charge hikes are right here: What does that imply for you?

Fed officials said Wednesday they are raising interest rates, beginning their first cycle of rate hikes since the one that began in late 2015.

The fact that the Fed is finally moving away from zero shows confidence in the health of the jobs market. But the speed with which interest rates could go up underscores concerns about the soaring cost of living.

Americans will experience this policy shift through higher borrowing costs: No longer will it be insanely cheap to take out mortgages or car loans. And cash sitting in bank accounts will finally earn something, albeit not much.

“Money will no longer be free,” said Joe Brusuelas, chief economist at RSM US.

When the pandemic erupted, the Fed made it almost free to borrow in a bid to encourage spending by households and businesses. To further boost the Covid-ravaged economy, the US central bank also printed trillions of dollars through a program known as quantitative easing. And when credit markets froze in March 2020, the Fed rolled out…

The post Charge hikes are right here: What does that imply for you? appeared first on CaymanMama.com.

from CaymanMama.com https://ift.tt/Uva5tMR