How Fed hike will affect mortgages, car loans, credit cards
Are mortgage rates going up? How about car loans? Credit cards?
How about those nearly invisible rates on bank CDs — any chance of getting a few dollars more?
With the Federal Reserve having raised its benchmark interest rate Wednesday and signaled the likelihood of additional rate hikes later this year, consumers and businesses will feel it — if not immediately, then over time.
The Fed's thinking is that the economy is a lot stronger now than it was in the first few years after the Great Recession ended in 2009, when ultra-low rates were needed to sustain growth. With the job market in particular looking robust, the economy is seen as sturdy enough to handle modestly higher loan rates in the coming months and perhaps years.
"We are in a rising interest rate environment," noted Nariman Behravesh, chief economist at IHS Markit.
Here are some question and answers on what this could mean for consumers, businesses, investors and the economy:
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