Fed raises rates...what does it mean for me?

Today, 06/14/2017, the Fed raised interest rates from a band of .75% to 1% to 1% to 1.25%. This was widely expected and already priced in for the most part in the markets. You can read about it here:

Fed rate hike 2017-06-14

What does this mean to you as a consumer? That depends on which angle. The markets in the US immediately took a dip, which actually kept mortgage rates lower. Remember, when the Fed changes rates, they only change the rates that banks charge each other for bank to bank loans, but this has a ripple effect throughout the economy by boosting rates that savers will earn with money in a bank, but also boosting rates on credit cards and other shorter term loans.

So, if you are thinking about a mortgage, you may want to jump on that quickly, or you may miss out on historically low rates. If you have credit card debt, pay it off. Start saving more, and if you work with me on investing advice, you know we take a passive approach to investing, so the long term investing plans we lay out for you may see some ups and downs. However, they are long term, so stay the course, and keep saving and investing to reach your financial goals!