How higher Fed rates stand to affect Americans' finances
May 4, 2022
WASHINGTON (AP) — Record-low mortgages below 3%, reached last year, are long gone. Credit card rates will likely rise. So will the cost of an auto loan. Savers may finally receive a yield high enough to top inflation.
The substantial half-point hike in its benchmark short-term rate that the Federal Reserve announced Wednesday won't, by itself, have much immediate effect on most Americans' finances. But additional large hikes are expected to be announced at the Fed's next two meetings, in June and July, and economists and investors foresee the fastest pace of rate increases since 1989.