How the most recent interest rate hike could benefit the economy

The Fed could be nearing the end of its cycle of rising interest rates

ROANOKE, Va. – The Federal Reserve raised interest rates this week for the eighth time in the matter of a year.

10 News is working for you to explain why economists said this specific hike is a good sign.

This is the smallest hike since last March, at a quarter percent.

Economists like Chris Markowski with Markowski Investments said this could mean the Fed is preparing to slow down on raising interest rates.

These interest rates are meant to reduce inflation by deterring people from taking out a loan for a big purchase, like a car or a house as well as slow spending.

“Their credit card rates are going to go up. Mortgage rates will be affected by some degree. But the bottom markets are taking this as this is the end or close to the end of this hiking cycle,” said Markowski.

He also recommends for people to call their credit card companies to try and negotiate the interest rate down because of these recent hikes.

About the Author:

Sydney joined the WSLS 10 News team in June 2021.