The Federal Reserve raised interest rates to a 22-year high this week — a milestone that carries major implications for the finances of everyday people, experts tell ABC News.
interest rates to a 22-year high this week -- a milestone that carries major implications for the finances of everyday people, experts told ABC News.from a peak last summer.for borrowers, who will face even higher costs for things like car loans to credit card debt to mortgages.
The high interest rates do deliver benefits for savers, however, who stand to gain from an uptick in the interest yielded by accounts held at banks as well as bonds and"It depends what side of the ledger you find yourself on," James Cox, a financial advisor and managing partner of Virginia-based Harris Financial Group, told ABC News.
"If you're a saver and you have money in the bank, this is fantastic," he added. "For people who borrow money, it's way more expensive."What do historically high interest rates mean for borrowers?So any purchase that requires a loan -- for a home, car, or higher education -- could be affected. Credit card rates are also highly sensitive to Federal Reserve moves, so card holders should expect even higher payments.
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