What rising interest rates mean for you

[Scott]

 

The Federal Reserve raised its benchmark interest rate for the sixth time in a row on Wednesday, to a range of 3.75% to 4%.

While there may be plenty of downside in the form of higher borrowing costs for consumers, one positive outcome is that your savings may actually start earning a little money after years of barely-there interest.

“Interest rates have increased at the fastest pace in 40 years,” said Greg McBride, chief financial analyst at Bankrate.com. “Mortgage rates have rocketed to 20-year highs, home equity lines of credit are the highest in 14 years, and car loan rates are at 11-year highs.

https://www.cnn.com/2022/11/02/success/what-rising-interest-rates-mean-credit-mortgage/index.html

[Scott]

Fed delivers big rate hike, signals possible smaller increases ahead

WASHINGTON, Nov 2 (Reuters) - The Federal Reserve on Wednesday raised interest rates by three-quarters of a percentage point as it continued to battle the worst outbreak of inflation in 40 years, but signaled future increases in borrowing costs could be made in smaller steps to account for the "cumulative tightening of monetary policy" it has enacted so far.

Fed Chair Jerome Powell said that change in pace could come as soon as the central bank's next meeting in December, but he also cautioned that there remains extensive uncertainty about how high rates will need to go and they could well end up being higher than policymakers had estimated at their last meeting in September.

The time to reassess the pace of increases "is coming," Powell said at his press conference following the decision by the policy-setting Federal Open Market Committee (FOMC) to increase rates by a three-quarter point margin for a fourth straight meeting.

https://www.reuters.com/markets/us/fed-set-another-big-rate-hike-may-tamp-down-future-tightening-2022-11-02/

 

[thaibeachlovers]

Other than such as rent and basic food, most of my expenditure is of non essentials, which can be cut back.

Earning some real interest on savings will be good.

 

The real pain, IMO, will be felt by those that bought houses they could only afford on a low interest rate. Perhaps the 1970s is too long ago for most to remember high interest rates, and they thought the good times of cheap loans would last forever.

[it is what it is]

Just now, thaibeachlovers said:

Other than such as rent and basic food, most of my expenditure is of non essentials, which can be cut back.

Earning some real interest on savings will be good.

 

The real pain, IMO, will be felt by those that bought houses they could only afford on a low interest rate. Perhaps the 1970s is too long ago for most to remember high interest rates, and they thought the good times of cheap loans would last forever.

in the 1980s interest rates were as much as 15%, plus negative equity. the current generation have no idea how good they have had it, they'll just have to learn to deal with the situation as my generation did.

[puchooay]

For me, as some one who does not overstretch my budget, does not buy unless I can afford, understands that interest rates must rise at some point and plans for the future, interest rate rises mean I'll get more on my savings.

 

It makes me laugh when the whingers that got into a mess by over spending want the government to do exactly the same to help them out.