The Federal Reserve is expected to increase the cost of borrowing by 0.75 percentage points this move is likely to put pressure on already struggling families and businesses.
The United States is nearing the end of its seven-year economic expansion, which is the longest on record. And with unemployment at a 17-year low and inflation finally starting to tick up, the Federal Reserve is widely expected to raise interest rates by 0.75 percentage points.
Many Americans are still feeling the effects of the Great Recession, and a rate hike could further squeeze household budgets. But the Fed has a dual mandate of maximizing employment and keeping prices stable.
So what does this all mean for you? If you’re looking to buy a home or take out a loan, you may want to do it sooner rather than later. Interest rates are still historically low, but they’re expected to start rising in the coming months.
Central banks around the world are starting to raise interest rates after years of keeping them at record lows. This is causing some anxiety in the financial markets, as higher rates could lead to a sell-off in stocks and other assets.
The Federal Reserve has announced that interest rates will rise and this news has investors and experts wondering what this could mean for the US economy. Many are concerned that this could lead to a recession, as higher interest rates often lead to a slowdown in economic activity.
However, it’s important to remember that the Fed has been gradually increasing rates and the economy has been doing okay despite these increases. So while there could be some short-term challenges, it’s unlikely that this will be the trigger for a major economic downturn.
In the end, only time will tell how this new development will impact the economy. But regardless of the outcome, we can be sure that the Fed’s decision was based on what it believes is best for the country.