What does the Fed raising interest rates mean for you?

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Chief Financial Architect at Reyes Financial Architecture, David Reyes explains why the rates were raised and what it means for the average consumer.

The Federal Reserve on Wednesday launched its biggest broadside yet against inflation, raising benchmark interest rates three-quarters of a percentage point in a move that equates to the most aggressive hike since 1994.

Ending weeks of speculation, the rate-setting Federal Open Market Committee took the level of its benchmark funds rate to a range of 1.5%-1.75%, the highest since just before the Covid pandemic began in March 2020.

Stocks were volatile after the decision but turned higher as Fed Chairman Jerome Powell spoke in his post-meeting news conference.

“Clearly, today’s 75 basis point increase is an unusually large one, and I do not expect moves of this size to be common,” Powell said. He added, though, that he expects the July meeting to see an increase of 50 or 75 basis points. He said decisions will be made “meeting by meeting” and the Fed will “continue to communicate our intentions as clearly as we can.”

“We want to see progress. Inflation can’t go down until it flattens out,” Powell said. “If we don’t see progress ... that could cause us to react. Soon enough, we will be seeing some progress.”
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It means for most Americans time to clean every gun they own

doublegmemes
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From what i read and hear is that investors keep buying homes before reg folks have a chance to try for any so that has gotta stop or reg folks are just gonna keep renting which sux for those who wanna own a home anytime.

cable
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If interest rates go up then housing purchase price would need to go down to keep mortgages from going up. So it the end mortgage payments would stay the same yet the lump sum payment goes down. Who has $800, 000 to pay at once? Of course, corporate slumlords do.

josecampos
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It means my savings account will grow faster. I won't take out any new debt.

qreecpy
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People saying interest rates will drop home prices, this is untrue. when the media starts talking about a crash you know it's not going to happen. If multiple people bid on these houses because of interest rates guess what's going to happen? a bidding war lol and prices will still increase. We need a huge influx of homes to hit the market at the same time. I believe most of the people who wanted to leave cali for political reasons already left.

sandiego