This week, the Fed Raises Interest Rates by 0.75 percentage points. This was the largest increase since 1994 which is consider as an aggressive move in a bid to bring the current inflation rates down.
This is probably not the end of the interest rate hike since the Fed promised more aggressive moves ahead if current hike doesn’t bring inflation down.
What is the impact when Fed continue to rise interest rates?
Let us take a look at some of the impact below.
Impact of Fed Interest Rate Hike
I wrote about this back in 2016 about the impact when Fed raises interest rates. There are benefits and downsides to such moves.
Higher Mortgage Rates & Loans
Raising interest rates makes it more expensive for to borrow from banks. For home buyers this will mean higher mortgage rates when they borrow from banks to pay for their new property.
Strengthening of US Dollar
Rising interest rate will mean that the US dollar will continue...