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:



Add Comment

all comments

  Other news

more
US Sanctions Firms Working With North Korea, Iran

US Sanctions Firms Working With North Korea, Iran..

24-Mar, 16:10

A television screen shows a news program reporting about North Korea's...

Row over US ISP customer data sales

Row over US ISP customer data sales..

24-Mar, 13:18

US politicians have voted to remove rules that demanded ISPs got...

Jay Z plans Trayvon Martin TV series and film

Jay Z plans Trayvon Martin TV series and film..

24-Mar, 10:08

The shooting of black teenager Trayvon Martin by a US neighbourhood...

A vote with few voters

A vote with few voters..

24-Mar, 23:42

Hong Kong chooses its next leader on Sunday in a vote overshadowed by...

3 Decapitated Bodies Found in Somalia After Abduction

3 Decapitated Bodies Found in Somalia After Abduction..

01-Feb, 12:46

Somalia residents say they have found three decapitated bodies just days...

Colombia keeps cocaine from spoiling Valentine's Day flowers

Colombia keeps cocaine from spoiling Valentine's Day flowers..

14-Feb, 00:14

Cocaine is probably the last thing most people think about when buying...

Always Spring Episode 66

Always Spring Episode 66..

30-Jan, 08:43

The following Always Spring Episode 66 English Sub has been released....

Romania: thousands attend pro-government rally

Romania: thousands attend pro-government rally..

25-Feb, 06:58

Thousands of people turned out for a pro-government rally in southern...