With a half-point increase on Wednesday, the Federal Reserve’s benchmark interest rate reached a range of 4.25% to 4.5%, the highest level in 14 years.
The Fed’s seventh rate increase this year will make borrowing for homes, cars, and other purchases considerably more expensive for families and businesses.
On the other side, you’ll get a little more interest if you have money to save.
The Fed raised rates by a smaller amount on Wednesday than it had in its previous four consecutive three-quarter-point increases to combat excessive inflation.
The downturn is partially due to the economy’s cooling and the reduction of inflation.
Many analysts express concern that a recession, which might result in job losses that would be difficult for households already suffering from inflation, is still on the horizon as interest rates rise.