Financial expert discusses impact of Federal Reserve raising interest rates

US. REALLY, MICHELLE. WELL, YEAH, WITH THIS HIGHER INTEREST RATE, JUST LOOK FOR THINGS TO GET MORE EXPENSIVE. LIKE IF YOU NEED TO BUY A NEW CAR. FINANCIAL EXPERTS SAY WITH A LOAN RATES GOING UP, IT’S ALL IN AN EFFORT TO BRING INFLATION DOWN. NEW CARS ARE BACK ON THE LOT OF SACRAMENTO DEALERSHIPS AND THAT MEANS SO ARE BUYERS. WE NEED A BIGGER CAR. OUR FAMILY’S GROWING AND WE NEED TO MOVE UP FROM A CAR TO SUV. BUT TWO YEAR OLD ELIJAH, FIVE MONTH OLD SANDRA AND ANOTHER BABY ON THE WAY. THE TIMING FOR A NEW SUV IS NOT THE BEST FOR A GET A FAMILY. THERE’S NOT MUCH WE CAN DO ABOUT INTEREST RATES. I MEAN, IT’S BASICALLY WE WERE IN NEED OF A CAR. SO IT’S LIKE WE HAVE TO BUY IT REGARDLESS OF THE POINT. 75 JUMP, IT’S JUST GOING TO BE HARDER. IT’S JUST GOING TO BE MORE EXPENSIVE. FINANCIAL EXPERT KELLY BROTHERS SAYS THE FEDERAL RESERVE’S MOVE TO RAISE THE INTEREST RATE ANOTHER .75 IS HOW THE GOVERNMENT KEEPS INFLATION IN CHECK. THEY FEEL IT’S VERY IMPORTANT TO PULL INFLATION BACK IN, TO REIN IT IN, TO GET THAT UNDER CONTROL. AND THE ONLY REAL MEANS THEY HAVE OF DOING THAT IS RAISING INTEREST RATES AND SLOWING DOWN THE ECONOMY. THE HIGHER INTEREST RATE MEANS PAYING MORE FOR A NEW CAR. AT THE BEGINNING OF THE YEAR. THE AVERAGE INTEREST RATE ON A SIX MONTH NEW CAR LOAN. WAS 3.85%. WITH TODAY’S HIKE, THAT RATE COULD BE AS MUCH AS 5.75. REGULATORS KNOW THEY’LL HAVE TO STICK TO THEIR FAMILY BUDGET. WE HAVE TO BE A LITTLE BIT MORE SAVVY ON OUR SPENDING. THIS DEFINITELY IS GOING TO PLAY A BIG ROLE IN OUR SPENDING, MAKING THIS AND MAKING THIS TRANSITION FROM A CAR TO SUV, TAKING ON A NEW LOAN WITH A HIGHER INTEREST RATE. WELL, FAMILIES WILL FEEL THE PINCH. BROTHERS SAYS THIS WILL EVENTUALLY HELP THE ECONOMY AFTER THE PANDEMIC. WE’RE NOT PUSHING RATES UP ABNORMALLY. WE’RE RETURNING TO A MORE NORMAL RATE POSITION. WHAT WAS ABNORMAL WAS WHAT HAPPENED AFTER COVID, WHERE WE WENT DOWN TO ZERO. AND BORROWING BECAME CHEAPER. COST NOTHING. YEAH. AND BROTHER SAYS IF YOU DO HAVE CREDIT CARD DEBT, JUST TRY TO MAKE SOME BIGGER PAYMENTS INSTEAD OF JUST DOING THE MINIMUM PAYMENT. HE SAYS THOSE ANNUAL PERCENTAGE RATES ARE SURE TO GO UP. SOME MAY BE UP TO 19% ALREADY. REPORTING LIVE IN SACRAMENTO, MICHELLE, BONJOUR. KCRA 3 NEWS. YEAH. IMPORTANT NOW MORE THAN EVER TO GET THOSE CREDIT CARD DOWN THE PAYMENTS YOU NEED. WELL, FINANCIAL EXPERTS SAY THAT THERE IS AN UPSIDE TO THE HIKE IN INTEREST RATES HERE. SAVERS WHO KEEP THEIR MONEY IN THE BANK WILL SEE A BIT OF A

Financial expert discusses impact of Federal Reserve raising interest rates

Updated: 10:07 PM EDT Sep 21, 2022

The Federal Reserve is intensifying its battle to bring down 40-year high inflation by raising interest rates three-quarters of a point for a third straight time on Wednesday. This comes as the housing market is cools, with home sales dropping for seven straight months.Variable interest rate products like credit cards, auto loans and mortgages are impacted by the Federal Reserve's decision to raise interest rates.Financial expert Kelly Brothers breaks down the latest developments and what it means for you.Watch the video above for the full story.

The Federal Reserve is intensifying its battle to bring down 40-year high inflation by raising interest rates three-quarters of a point for a third straight time on Wednesday. This comes as the housing market is cools, with home sales dropping for seven straight months.

Variable interest rate products like credit cards, auto loans and mortgages are impacted by the Federal Reserve's decision to raise interest rates.

Financial expert Kelly Brothers breaks down the latest developments and what it means for you.

Watch the video above for the full story.