How a Fed increase could affect credit card debt, auto loans

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federal reserve, rate hikes

The Associated Press

NEW YORK (AP) – If, as expected, the Federal Reserve raises interest rates yet again in its drive to cool inflation, much of America will be directly affected.

Rates on credit cards, mortgages and auto loans all stand to rise even more. The result will be more burdensome loan costs for both consumers and businesses.

On the other hand, many banks are now dangling higher rates on savings accounts, offering people the opportunity to earn more money.

Economists worry, though, about whether the Fed’s streak of 10 rate hikes since March 2022 will eventually cause the economy to slow too much and cause a recession.

Read the full story on AP News right here.

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5/3/2023 11:35:05 AM (GMT -5:00)

Categories: Regional and US News