Interest rates are going UP for the first time in 3 years, with officials unanimously voting for a quarter-point hike to 3.75% to 4%.
Trump has spent more than a year demanding dramatically lower rates and, within hours of the decision, was back on Truth Social calling for rates of “1%, or less.”
“LOWER THE INTEREST RATES FOR THE UNITED STATES OF AMERICA, AND FAST!”
Instead, Fed Chair Kevin Warsh, the man Trump picked expecting lower rates, said the Fed had “removed a dose of accommodation.”
The problem is inflation still won’t behave. Tariffs, the Iran war pushing up energy prices and an enormous AI investment boom have all added pressure. The Fed now expects inflation to remain above its 2% target until 2029. And this probably isn’t one-and-done.
16 of 18 Fed officials see at least one more hike before the end of the year. 4 officials even expect 2 hikes.
What does that mean for your wallet?
Credit cards: more expensive almost immediately. Carrying a balance just got uglier. Mortgages: fixed-rate owners are insulated. New buyers and anyone on an adjustable rate, not so much, with mortgage rates already hovering near 7%.
Savings: finally, some good news. High-yield accounts, CDs and money-market funds should benefit, assuming your bank actually passes the higher rates on.
WalletHub estimates this single quarter-point hike could cost credit-card borrowers around $2 billion in additional interest over the next 12 months.
So while Washington fights over whether rates should be 1% or 4%, anyone carrying debt gets to pay for the argument. Sources: Reuters, Bloomberg, Federal Reserve, WalletHub / Writer: Julie
Life event that changes all: Horse riding accident in Zimbabwe in 1993, a fractured skull et al including bipolar anxiety, chronic fatigue …. co-morbidities (Nietzche 'He who has the reason why can deal with any how' details my health history from 1993 to date). 17th 2017 August operation for breast cancer (no indications just an appointment came from BreastCheck through the Post). Trinity College Dublin Business Economics and Social Studies (but no degree) 1997-2003; UCD 1997/1998 night classes) essays, projects, writings. Trinity Horizon Programme 1997/98 (Centre for Women Studies Trinity College Dublin/St. Patrick's Foundation (Professor McKeon) EU Horizon funded: research study of 15 women (I was one of this group and it became the cornerstone of my journey to now 2017) over 9 mth period diagnosed with depression and their reintegration into society, with special emphasis on work, arts, further education; Notes from time at Trinity Horizon Project 1997/98; Articles written for Irishhealth.com 2003/2004; St Patricks Foundation monthly lecture notes for a specific period in time; Selection of Poetry including poems written by people I know; Quotations 1998-2017; other writings mainly with theme of social justice under the heading Citizen Journalism Ireland. Letters written to friends about life in Zimbabwe; Family history including Michael Comyn KC, my grandfather, my grandmother's family, the O'Donnellan ffrench Blake-Forsters; Moral wrong: An acrimonious divorce but the real injustice was the Catholic Church granting an annulment – you can read it and make your own judgment, I have mine. Topics I have written about include annual Brain Awareness week, Mashonaland Irish Associataion in Zimbabwe, Suicide (a life sentence to those left behind); Nostalgia: Tara Hill, Co. Meath.
canisgallicus 