How the Federal Reserve's recent interest rate hike could affect your wallet
How the Federal Reserve’s recent interest rate hike could affect your wallet
The Federal Reserve’s recent interest rate increase may impact debt, savings, and investments, with financial planner Reshell Smith offering insights on navigating the changes.
ORLANDO, Fla. —
The Federal Reserve recently raised interest rates by 0.25%, aiming to cool inflation by slowing borrowing and spending.
Certified financial planner Reshell Smith joined WESH 2 to explain that the rate hike could make credit cards and other variable-rate debt more expensive, while mortgage and auto borrowing may remain costly.
Advertisement
She also addressed the potential impact on investments, noting that higher rates can affect the stock market.
Smith highlighted opportunities for savers, highlighting that raised rates can mean better yields on high-yield savings, certificate of deposits, and other cash options.
To make wise financial moves, Smith advised consumers to review high-interest debt, shop for better rates on cash, avoid unnecessary borrowing, and ensure their investment strategy aligns with long-term goals.
Click here to learn more about AMES Financial Solutions.