The Federal Government is still trying to slow the economy by raising the interest rates you pay to borrow money, and while some say that strategy is working, others say it isn’t working well enough because the interest rates have been hiked again for the 8th time.
The latest quarter of a percent jump follows a one half percent hike just two months ago, and that comes on the heels of a series of three quarter point raises throughout last year.
That results in the highest interest rate since 2007, resting now somewhere between four and a half to four and three quarters percent.
Fed Chairman Jerome Powell maintains the increases are necessary to keep inflation at bay, and it may not be over yet. Powell says there is still more work to do.
As for what it all means to the average American, if you are planning a large purchase, such as homes or cars, even large appliances, it will cost you more. It also influences the amount of interest banks will charge you, so even using a credit card could cost you more money.
Some financial pundits say this is the fastest rate hikes since the 1980’s.