ARLINGTON, Va. (12/22/15)--The Federal Reserve has increased interest rates by a quarter of a percentage point, signaling that the U.S. economy is strong enough to withstand higher borrowing costs. What does the rate hike mean for your personal finances?
Nothing at first. The Fed has made it clear that the rate hike is a tentative beginning of a gradual tightening cycle. You won’t feel the effects of the rate hike overnight, but it eventually could hit your wallet (The Washington Post Dec. 16).
Here are five factors to consider:
For related information, read “Save Money Each Month: Refinance Your House” and “Everybody's Money Matters: Deciding How Much to Save” in the Home & Family Finance Resource Center.