{"id":1390994,"date":"2022-03-21T01:00:05","date_gmt":"2022-03-21T05:00:05","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1390994"},"modified":"2022-03-21T05:15:20","modified_gmt":"2022-03-21T09:15:20","slug":"the-federal-reserve-just-raised-interest-rates-how-will-it-impact-your-family","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-federal-reserve-just-raised-interest-rates-how-will-it-impact-your-family\/","title":{"rendered":"The Federal Reserve Just Raised Interest Rates. How Will It Impact Your Family?"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fthe-federal-reserve-just-raised-interest-rates-how-will-it-impact-your-family%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1390994&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/dw-wp-production.imgix.net\/2022\/03\/Federal-Reserve-.jpg?w=1200&#038;h=800&#038;ixlib=react-9.3.0\" class=\"ff-og-image-inserted\" alt=\"image\" \/><\/div>\n<p dir=\"ltr\">On Wednesday, the Federal Reserve <a href=\"https:\/\/www.youtube.com\/watch?v=zaNpAAubt98\">voted to raise interest rates<\/a> by a quarter of percentage point in what many experts say is an attempt to fight the impacts of inflation. Americans are currently dealing with the worst inflation in 40 years, and the Biden administration is desperate to rein in the cost of consumer goods and the dwindling value of the dollar.<\/p>\n<p dir=\"ltr\">On Monday, The Daily Wire\u2019s Cabot Phillips joined the \u201cMorning Wire\u201d podcast to explain why the Fed enacted such a policy and how it will impact the average American family. In short, the move could have a ripple effect that will touch everything from your home to your car payments.<\/p>\n<p dir=\"ltr\">\u201cEssentially the Federal Reserve interest rate establishes the target cost of borrowing money,\u201d Phillips explained. \u201cSo whether you want a loan for a car, house, or land, banks determine their interest base rate in large part on the rates set by the Fed.\u201d<\/p>\n<p dir=\"ltr\">\u201cNow, since March 2020, the Fed\u2019s rate has been between 0 and 0.25%, meaning you could basically get money for free, because the government was worried about an economic slowdown during COVID, and wanted people to keep borrowing and spending money during the pandemic,\u201d he continued. \u201cThe Fed committee that decides the interest rate meets every six weeks, and last Wednesday decided for the first time since 2018 to raise interest rates.\u201d<\/p>\n<p dir=\"ltr\">These rates will periodically rise until they reach two percent by the end of year, he added. \u201cAfter that, they\u2019re expected to reach 2.75% by the end of 2023 \u2014 that would be the highest federal interest rate since 2008,\u201d he noted.<\/p>\n<p dir=\"ltr\">John Bickley, co-host of \u201cMorning Wire,\u201d asked Phillips how this would, in theory, help solve inflation.<\/p>\n<p dir=\"ltr\">\u201cThe general idea is that as interest rates go up, average people are less likely to take out loans because the deals aren\u2019t as good as they\u2019ve been,\u201d he explained. \u201cAs that happens, the idea is that people will stop borrowing and spending money, which will leave fewer active dollars in the economy \u2026 hopefully curbing inflation.\u201d<\/p>\n<p dir=\"ltr\">But, as Phillips noted, the rate hike will also have a ripple effect throughout the economy.<\/p>\n<p dir=\"ltr\">\u201cFor anyone taking out larger loans, they are gonna notice this,\u201d Phillips reported. \u201cA two percent increase on a mortgage loan, for example, would mean that the half million dollar house you want to buy could be $10,000 more in the long run.\u201d<\/p>\n<p dir=\"ltr\">\u201cIf you have an existing car loan or federal student loan, those won\u2019t be affected, because they\u2019re fixed rates, but others will,\u201d he clarified.<\/p>\n<blockquote>\n<p dir=\"ltr\"><em>For example, annual credit card rates are almost certainly going to go up this year, especially for people with lower credit scores, and banks will be more stingy this year on letting people open new lines of credit. If you\u2019re looking to buy a home right now, mortgage rates are also going up in the short term, and if you have an existing mortgage that\u2019s not a fixed rate but a variable rate, you can also expect to start paying more in interest each month.<\/em><\/p>\n<\/blockquote>\n<p dir=\"ltr\">Nonetheless, Phillips wanted to \u201cbe careful making declarations here, as trying to predict the future of economics is generally a crapshoot. But the expectation is that with less money changing hands, banks will do more to incentivize people to keep their money in savings because it\u2019s going to make banks more hungry for money.\u201d<\/p>\n<p dir=\"ltr\">\u201cThat means there\u2019s a good chance CD rates will go up in the coming months,\u201d Phillips stated. \u201cThere\u2019s also a good chance your financial advisor is going to start encouraging you to pay off credit card debt and really look into the specifics on any new auto loans you\u2019re taking out, because if those aren\u2019t fixed, they\u2019re gonna get more expensive.\u201d<\/p>\n<p dir=\"ltr\">\u201cDefinitely a lot to keep in mind for consumers these days,\u201d Bickley remarked in reaction to the news.<\/p>\n<p dir=\"ltr\">Monday\u2019s episode of \u201cMorning Wire,\u201d and all episodes of \u201cMorning Wire,\u201d can be listened to <a href=\"https:\/\/podcasts.apple.com\/sc\/podcast\/morning-wire\/id1576594336\">here<\/a>.<\/p>\n<p dir=\"ltr\"><em>The Daily Wire is one of America\u2019s fastest-growing conservative media companies and counter-cultural outlets for news, opinion, and entertainment. Get inside access to The Daily Wire by becoming a <a class=\"in-cell-link\" href=\"https:\/\/www.dailywire.com\/subscribe\" target=\"_blank\" rel=\"noopener\">member<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On Wednesday, the Federal Reserve voted to raise interest rates by a quarter of percentage point in what many experts say is an attempt to fight the impacts of inflation.<\/p>\n","protected":false},"author":1,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1390994","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1390994","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1390994"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1390994\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1390994"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1390994"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1390994"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}