BUFFALO, N.Y. (WIVB) — Interest rates took their biggest jump since 1994, with the Federal Reserve raising them by three-quarters of a percentage point on Wednesday.
The cost of pretty much everything has gone up this year, from gas to groceries and other goods. But now with this inflation hike, we are going to see it in other areas.
This inflation increase will affect mortgage and car loans, credit card borrowing, the job market and a lot more.
There’s a lot of economic uncertainty, and News 4 was told that’s something the market does not like. But there are steps we can take to help our finances down the road.
John Moshides, president of Moshides Financial Group and strategic partner with Vision Financial, says saving early and saving often will get you through these tough times.
“If you’re actively contributing to your 401K plan, staying invested, you’ll get through this downturn,” Moshides said. “What follows a downturn is an upturn. We don’t know exactly when. But if you stick with that, and stay the course, those are typically the systematic savers.”
While the Federal Reserve isn’t responsible for setting interest rates on your credit cards or car loans, it does control the federal fund rate. That’s, basically, the rate banks borrow from each other, in turn moving your interest rates one direction or another.
While contributing to your 401K as much as you can, Moshides also says keeping your debt under control and paying off your credit cards will help in the long run.
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Abby Fridmann is an anchor and reporter who joined the News 4 team in November 2020. See more of her work here.