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Fed raises key rate by a quarter point, consumer borrowing costs stay higher
Mortgages and other consumer loans have already risen as rates moved higher before the latest Fed increase, according to NYT Economy.
The Federal Reserve increased its key interest rate by 0.25 percentage points, a move that ripples through household borrowing costs, NYT Economy reports.
The outlet says that while the latest hike adds incremental pressure, mortgages and other consumer loans have already been trending higher as interest rates rose.
That means many borrowers may already be experiencing the broader impact of tighter monetary policy, even before the full effect of the most recent decision is felt.
Overall, NYT Economy frames the rate increase as part of a continuing shift that affects how expensive it is to finance big purchases and carry consumer debt.