Fed Raises Rates Amid Persistent Inflation Concerns
The Federal Reserve has raised its benchmark interest rate by 0.25 percentage points for the first time in over three years.
This decision, while not a surprise to markets, carries real consequences for consumers, according to Scripps News financial contributor Danny Moses.
Moses notes that inflation is running at 3.4% annually, and the Federal Reserve targets a 2% annual rate.
A stable job market gave policymakers confidence the economy could absorb the hike.
However, he warns that Americans with variable-rate debt will feel the impact most directly, as rates on loans such as home equity lines of credit (HELOC) and home equity loans will rise.
Moses points to oil prices as a key driver of inflation and a compounding burden on consumers, saying 'it's a double whammy' for those already struggling financially.