The Federal Reserve unanimously voted to raise its benchmark interest rate by 0.25 percentage points — the first such hike in over three years. Inflation is currently running at 3.4% annually, above the Fed's 2% target, and a stable job market gave policymakers confidence the economy could absorb the increase.
Financial contributor Danny Moses says those with variable-rate debt, such as HELOCs, will feel the impact most directly, while mortgage and auto loan rates may shift less. He described the economy as 'K-shaped,' with lower-income Americans hit hardest, and put the odds of another hike before year's end at 40% to 50%.
