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How will the interest hikes impact your finances?

The Federal Reserve is still raising the interest rates to help slow the rate of inflation.

As of Wednesday the interest rate was raised from 4.25% to 4.5%, which is the highest it’s been in 14 years according to the Associated Press.

This is the seventh hike in 2022 and it’s going to make mortgages, auto loans, and other types of purchases and loans more expensive for businesses and individuals.

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As for your personal savings, you have the chance to earn higher interest on it.

As the interest rates continue to happen, economists are worried that a recession may happen in 2023. If this happens, many people could lose their jobs and face additional struggles that many households are already facing.

Not only are loans impacted, but credit cards are also seeing massive increases in interest rates. This means people with open lines of credit will likely see their interest rise at the same rate as the Federal hike.

For those taking out private student loans, they can expect to see a higher interest rate on those as well.

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