Fed Rate Hike
The Federal Reserve is expected to raise its key interest rate on Wednesday. It would be only its second rate hike since 2006. The first was in December 2015.
One rate hike won’t change the world but the process of rising rates affects millions of Americans. If you have a credit card or savings account, invest in stocks or bonds, want to buy a home or a car, pay attention.
The Fed put rates at zero in December 2008 to revive the collapsed housing market during the Great Recession. Now, America is no longer in crisis mode and the economy can bear paying higher rates. A rate hike is a sign that the U.S. economy is improving.