Interest rates are set to rise. For consumers, it could 'add up quickly.'

That shift is a response to the highest inflation in four decades, with prices— a trend that economists think is likely to continue for months. Tightening monetary policy raises the costs of borrowing for consumers and businesses, weakening demand and curbing prices.

Every 0.25% increase equates to an extra $25 a year in interest for $10,000 in debt. So if the Fed boosts rates by a total of 1% over four hikes this year, consumers will pay $100 extra annually on that debt. Precarious financial situation Because the Fed won't increase rates until March at the earliest, Americans have some time to pay down credit card debt or refinance adjustable rate loans into fixed-rate loans, saving money over the long-term.Credit card rates, auto loans

To avoid getting hit by higher credit card rates, Schulz recommends that consumers call their card issuers now and ask for a lower rate. LendingTree has found that about 8 in 10 people succeed in securing a lower rate simply by requesting one. When inflation is expected to stay high, investors are inclined to sell Treasurys because the return on those bonds, known as yields, tend to be minimal after accounting for inflation. As that happens, the selling pressure on the bonds forces Treasurys to offer higher yields to attract investors. The result can be higher mortgage rates, though not always.

SMH!

feds waited too long to react

So instead of cracking down on monopolistic price gauging to achieve record corporate profits, the government is just gonna make credit more expensive? Cool, totally helpful.

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Fed chair Powell said repeatedly that inflation was 'transitory,' Turns out, he was completely wrong. Yet Biden still renominated him despite this glaring miscalculation about the US economy. Biden is showing to be a big disappointment in decision making.

Actually not that much since credit card companies haven’t lowered the lending rate as rates fell.

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