Local

Fed hikes interest rate - consumers frustrated by rising costs

BRAINTREE, Mass. — News of an interest rate hike is not good news to people already stretched thin by inflation.

“Gas, food, cost of living going up. Everything’s just going up these days,” said Dymone Blount, of Boston.

The Federal Reserve raised its rate half a percentage point in the hopes of reining in inflation.

“I don’t think I have to explain that we’re dealing with really bad inflation. Worse since about the 1980s,” said Michael Armstrong of the Armstrong Advisory Group.

Unfortunately, people are already well aware of that.

“I don’t even know where to begin. I don’t know how people with families are feeding them. Because I just go get a few things, and it’s like $50-$60 bucks,” said Susan Walsh, of Braintree.

But what does a higher Fed rate mean? It means you’ll pay more to borrow money, including for things like:

  • MORTGAGES
  • AUTO LOANS
  • STUDENT LOANS
  • AND YOUR CREDIT CARD

“Credit cards you mentioned. The average CC interest rate for balances outstanding is now 16 percent – very possible that starts moving up, and very rapidly, based on what we saw today,” said Armstrong.

So, what can consumers do? Armstrong says tackle your credit cards first.

“If you have outstanding credit card debt, if it already hasn’t been a focus, it really needs to be priority number one,” said Armstrong.

Consumers are already feeling it and very frustrated,

“I don’t know. This is getting crazy. I’m just trying to live, drive. I got a pretty decent car I want to drive it a little bit, you know what I mean?” said Blount.

Many are beginning to realize the real cost of inflation .

“Gas, food, everything’s going up, so as part of the budget you got to hold off on some things,” said Corey McElroy, of Braintree.

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