Federal Reserve Raises Interest Rates for Third Time Since Financial Crisis.
'The Federal Reserve raised its benchmark interest rate on Wednesday.
It was the third time since the financial crisis of 2008 that it raised rates, a reflection that unemployment is now at a healthier level and inflation is starting to increase.
The rate hike will increase the upward pressure on interest rates that consumers pay, but the immediate effect is likely to be modest. People with credit card debt are likely to see an immediate increase of about a quarter percentage point in their interest rates. The effect on longer-term loans is less direct, but the average rate on a 30-year mortgage rose by half a percentage point over the last year.
The nation’s largest borrower, the federal government, will also feel the pinch of higher rates. Federal interest payments, measured as a share of the economy, are expected to double over the next decade, according to the Congressional Budget Office.
Savers are unlikely to benefit immediately. Banks tend to raise interest rates on loans more quickly than they raise rates on deposits. That was certainly the pattern after the Fed last raised rates, in December. Last week, the average rate on a six-month certificate of deposit was 0.14 percent. Last year at this time: 0.13 percent.'>>>
https://www.nytimes.com/2017/03/15/business/economy/fed-interest-rates-yellen.html?
When the Fed Raises Rates, Credit Card Holders Feel It First.
'The immediate impact may be slight, but the prospect of three rate increases this year will mean higher loan payments and better returns on savings.'
https://www.nytimes.com/2017/03/14/business/economy/consumer-interest-rates-federal-reserve.html
= new reply since forum marked as read
