Federal Reserve raises interest rates in biggest hike since 1994 | New

ROCHESTER, Minnesota — The Federal Reserve is doing all it can to help control inflation, as it announced it would raise interest rates by 0.75%, the biggest hike since 1994.

Rising interest rates will raise the benchmark rate, or the rate at which banks pay each other to borrow money, to 1.5% and 1.75%.

The last time the Federal Reserve had interest rates at 1.5% and 1.75% was long before the COVID-19 pandemic hit in October 2019.

During the COVID-19 pandemic, interest rates were at low levels as the economy rebounded from a global shutdown.

Deon Oden, Coulee Bank’s senior loan originator, said rising interest rates will affect Americans who use credit cards, hold some type of loan, as well as those who apply for a line of credit on equity in their property.

“Before today it was 3.25%, so you add 0.75 to what it will be 4.125% in the future. So that will increase the level of payment on a home equity line of credit, which will only be That effect in the market translates into the mortgage side that affects that, which is people who want second mortgages, a line of credit against the equity in their property to make improvements home, etc.,” Oden said.

However, Oden said despite rising interest rates, it’s still a good time to buy a home.

“If you can afford a house and you can find one, buy it. Like I said before, it’s a long-term investment. Rates will always fluctuate. There will always be bull and bear markets and throughout the life of that house your interest rates may go up and down but in the end it will be worth more than you paid and you will have more equity when you go sell it, whether it’s your first home or your end all home before you retire,” Oden said.

The Federal Reserve is expected to raise interest rates again by the end of this year, which could be around 3.5%.

The Federal Reserve has said it is trying to bring inflation down to 2%, which could take another three years, according to the Federal Reserve.

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