The Fed raised interest rates last week; What does this mean for you – Indy News

Statewide – Last week the Federal Reserve raised interest rates to try to make inflation worse.

The job of the Federal Reserve is to keep the economy in check-in, as many hoaxers and Americans are feeling. Ball state economist Mike Hicks says you have the ability to buy in dollars now because there is not much money and not enough things.

As a result, the Fed raised interest rates by 0.25-percent last week, the first time they have done so since 2018. But Hicks says this is the first time we’ve seen so much growth this year.

“We’re talking about a two-and-a-half percent increase in their interest rates,” Hicks told Inside Indiana Business. We’re back in a lot of money behind very low commodity inflation, so if the Federal Reserve raises the rate you would expect it to be moderate. “

Hicks doesn’t expect prices to start falling too much as the Fed continues to raise rates, but he does expect price increases to slow down significantly. He said the rate hike would cause bloodshed in many areas of the economy, including home buying, where mortgage rates have returned to the 3-percent area.

“It could go up to four, four and a half percent,” Hick said. “We are still talking about historically moderate interest rates and the cost of borrowing. There’s nothing that customers need to do to stop buying a home, RV. “

As the Fed raises the rate, the desired effect is that the tendency to borrow money for fewer people will henceforth have to pay more interest on that borrowed money. This should reduce the economy and inflation, experts say.

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