The Fed is Expected to Raise Interest Rates Today

DID YOU KNOW? The Fed is expected to raise interest rates by a quarter point today and indicate it plans to keep hiking them in what many expect to be a hawkish message for markets. Wall Street economists expect the Fed to raise its growth forecasts and sound more confident about the outlook. (CNBC)

The household is in good shape. People arengoing back to work. FICO [credit] scores are fine. Companies are flush. Tax reform is still a benefit. We don’t have the extreme leverage we had in [2008]. All the lending has been pretty good.” says Jamie Dimon, J. P. Morgan Chase

I have oddly found that when the Fed raises its rate, interest rates tick down for a short period of time before gently rising. So it is not time to worry yet. But each increase means a reduction of buying power. You don’t feel the hurt so much in the monthly cost, but it will affect how much you are allowed to borrow.