Federal Chairperson Janet Yellen raised interest rates on December 14, from the previous 0.5 percent to the present 0.75 percent- a rise of a quarter percentage point. People who save money will be rewarded. Individuals oppressed by adjustable mortages and credit card debt could be hurt. However, Americans, for all practical purposes, will not be affected. The only way to make a dent in their finances if this hike in rates is followed by a number of others rate hikes.
Cumulative rate hike
Greg McBride of Bankrate said for all analysts when he pointed that single rate hike is inconsequential. What really makes the dent is the cumulative effect of all rates. These could happen, as new projections show that Federal officials expect a rise of a three quarter point in 2017. This is one up from two forecast rises made in September.
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