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The Daily

Fed Raises Benchmark Interest Rates for First Time in Years

By:
Chris Gaetano
Published Date:
Dec 16, 2015
By U.S. Government [Public domain], via Wikimedia CommonsFor the first time in nearly 10 years, the U.S. Federal Reserve announced it will be raising its benchmark interest rate, according to Bloomberg, citing improvements in labor markets and inflation outlooks. The increase, which is schedule to come tomorrow, won't be that big, weighing in at only a quarter of a percentage point, but it's no doubt a harbinger for things to come: according to the Wall Street Journal, the rate is projected to inch up further to 1.375 percent by the end of 2016, 2.375 percent by the end of 2017 and 3.25 percent by 2018. 

With higher interest rates, some things will become more expensive, according to Reuters, including credit card rates, mortgages, and home equity lines of credit, though due to competitive forces, car prices likely won't be affected, according to Reuters