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Fed hikes interest rates to 22-year high; New Yorkers will face increased costs as result

  • / Updated:
  • Staff Report 

The Federal Reserve recently announced a quarter-point rise in key interest rates, taking them to approximately 5.3%, a peak not seen in the past 22 years.


According to experts, this move could result in increased costs for mortgages, credit cards, and auto loans for New Yorkers. This marks the 11th interest rate increase in the last 17 months.

In a statement, the Fed mentioned that the economy is expanding at a moderate pace, indicating an improvement from its June assessment.

Chair Jerome Powell, in a news conference, further stated that the central bank’s staff economists no longer anticipate a recession, contradicting their previous prediction in April of a possible mild recession this year. The long-term implications of these interest rate hikes, however, and the potential consequences if the Fed’s strategy fails, remain to be seen.



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