'Extraordinary' rate hike comes on the heels of another sharp increase in June. That means debt is about to get more expensive.
amid a spike in mortgage rates and some consumers holding off on major purchases.
Every 0.25 percentage-point increase in the Fed's benchmark interest rate translates to an extra $25 a year in interest on $10,000 in debt. So Wednesday's 0.75 percentage-point hike means an extra $75 of interest for every $10,000 in debt. "They aren't stopping anytime soon, but I don't think we'll remain in 5th gear for all that long," Schulz noted.The stock market has taken a beating this year amid the impact of high inflation and the Fed's series of rate hikes.
Indeed, credit card rates have already risen in response to the Fed's previous rate hikes, with the average rate on a new card now at 20.82%, according to LendingTree data. That's the highest average since at least August 2019. "The good news is that those offers are still widely available and plentiful if you have a good credit score," Schulz noted. That would help consumers with credit scores of about 700 and above, he noted.
"[M]ortgage rates could trend up over the next few weeks," noted Jacob Channel, senior economist for LendingTree, in an email prior to the Fed's announcement.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
China's Fed insiders, oil reserves tapped, Fed decision imminent: Wednesday's 5 things to knowThe Fed is widely expected to raise the Federal Funds rate by three-quarters of a percentage point, even as a new report reveals China has tried to undermine American monetary policy.
Leer más »
EUR/USD sees more gains above 1.0150 amid subdued DXY, Fed policy in focusThe EUR/USD pair is advancing strongly in the Asian session as the US dollar index (DXY) is displaying a subdued performance ahead of the interest rat
Leer más »
Asian markets follow Wall Street lower ahead of likely Fed rate hikeAsian stock markets followed Wall Street lower Wednesday as traders prepared for a possible sharp interest rate hike from the Federal Reserve to cool inflation.
Leer más »
Google gives jittery stocks a lift ahead of FedBetter-than-expected results at Microsoft and Google helped soothe a nervous mood in stock markets on Wednesday, while a cut in Russian gas flow dragged on the euro and a Federal Reserve meeting due later in the day kept bonds and the dollar on edge.
Leer más »
USD/CHF justifies safe-haven allure as sellers approach 0.9600 ahead of Fed meetingUSD/CHF justifies safe-haven allure as sellers approach 0.9600 ahead of Fed meeting – by anilpanchal7 USDCHF RiskAppetite Fed Recession Currencies
Leer más »
European Markets Head for Mixed Open Ahead of Fed DecisionEuropean markets are set to open in mixed territory on Wednesday as investors look ahead to the latest monetary policy decision from the U.S. Federal Reserve.
Leer más »