Fed raises rates by quarter point

Last week, I posted an article that showed some troubling signs for the New Jersey housing market. Yesterday, the Federal Reserve approved its first interest rate increase in more than three years. This move is being made to fight rising inflation while not stymying economic growth. This move will raise the cost of consumer borrowing and credit. The current interest rate increase is by a quarter percentage point. But the Fed will probably raise it even further in the coming months. Hopefully, the Fed's plan is on point and will slow inflation. #InterestRates #HousingMarket #Inflation #EconomicGrowth #NewJersey

Today the Fed raised the target range of the federal funds rate, which can have positive implications for your savings deposit accounts, although they won’t be immediate. As reported by Kelly Anne Smith for Forbes Advisor:

???The Federal Reserve raised its target for short-term interest rates by 0.25% today and signaled many more rate increases are on the way as the central bank tries to quash sky-high inflation.

For the first time in years the Fed is raising rates - it's an attempt to get inflation under control and respond to the reality that money can't be as cheap as it got during the peak of the shutdowns and closures of the pandemic. What's always key to watch is the signals; a quarter percent rise in interest rates isn't significant on its own, it is just the first of many that will be happening this year. They also increased their inflation projections (which were way too low to be realistic, and at 4.1% may still be). GDP will also be lower, in their new projections, growing only 2.8%. There is a lot of uncertainty in the world and this hits the economy on micro and macro levels...just remember, this too shall pass. #economy #money #litrendingtopics Lions Financial Devin Banerjee, CFA

The Pandemic Fed is over. The Federal Reserve raised interest rates today, as everyone expected, by 0.25 percentage point, the first rate hike since 2018. Back then, the biggest geo-political risks involve a trade dispute between China and the U.S. Now, we're coming off 2 years of a pandemic and nearly a month since Russia invaded Ukraine. Perhaps more germane to the Fed's purview, inflation is growing at the fastest rate in 40 years, with no end in sight, which is why Powell and co. felt now was the time to get borrowing costs back toward something resembling normal. The Fed has a very difficult job ahead. They need to get inflation closer toward their long-term target of 2%, while not raising interest rates too far or too fast so as to cause a recession. We Forbes Advisor will of course monitor their successes and failures. Meanwhile the path of the pandemic, and the events in Ukraine, only add to the uncertainty. How well the Fed walks this tightrope will impact the livelihoods of millions of Americans. No pressure. #litrendingtopics #federalreserve #interestrates https://lnkd.in/gcuW-4Hv

And so it begins...The long awaited season of Federal Reserve rate hikes has finally begun. You can expect to pay higher interest costs on a variety of loans, mortgages and more. Hoping for a bigger return on your saving accounts? You'll have to wait awhile for that.