- The Fed’s next big rate hike is expected to come Wednesday afternoon.
- Even though the Fed doesn’t directly control consumer interest rates, they will follow suit so people should be prepared.
- Rates on everything from credit cards, autos, mortgages and more will rise.
Americans should prepare their finances for even higher interest rates this year.
With inflation still near a 40-year high, the Federal Reserve’s policy-making arm delivered a third consecutive three-quarters of a percentage point hike in its short-term benchmark fed funds rate to a 3% to 3.25% target range, as expected, on Wednesday, It also telegraphed more rate hikes to come as it focuses on combating inflation, so consumers should expect their costs to head even higher and job losses to mount as economic growth grinds to a halt.