WASHINGTON, D.C. (CNN) – Housing, cars, student loans and your credit card—get ready to see interest rates on all of the above go up.
The Federal Reserve has raised the interest rate to a range of 2 to 2.25-percent. saying the economy is strong.
Federal Reserve Board Chair Jerome Powell said, “Growth is running at a healthy clip. Unemployment is low. The number of people working is rising steadily and wages are up.”
And every time rates go up, banks find ways to pass on those extra costs to consumers.
Economic experts say nearly everyone will see interest rates go up.
President of the American Institute for Economic Research Edward Stringham said, “If you have a car loan, you’ve got a credit card you’re gonna have to start paying more money each month.”
They also say people with variable mortgage rates will also see changes in the long-term. And if you rent, experts say landlords may pass down those costs to you.
Stringham explained, “We’ve got prices increasing in all of the economy. If the price of the landlord goes up, that also means the price for the tenant goes up.”
Certain car and student loans may also be impacted.
Since 2008, interest rates have been close to zero as part of the Fed’s strategy to get out of the recession.
As the economy improved, the Fed has been increasing rates little by little. “This gradual return to normal is helping to sustain this strong economy for the longer run benefit for all Americans,” Powell said.
© 2024 KOBI-TV NBC5. All rights reserved unless otherwise stated.