DAYTON — The price of gas and food continues to increase, and soon it’ll cost you more to buy a car, a house, or use a credit card.
Last week the federal reserve raised its interest rate by a half percent, that’s the highest jump in 22 years.
This means the rate jumped from 0.5 percent to one percent.
The government hopes this will slow down the economy until inflation is back under control.
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This interest rate hike will affect credit cards, mortgages, and savings accounts with interest rates.
News Center Seven Dontre Drexelius spoke with Fall Ainina, the Director of Research at James Investment Research Inc.
“The interest rate last year was close to zero today than yesterday once the fed decided to jack up the interest rate by half a percent. Typically, they increase interest rates by a quarter-point. But this time they went ahead because was a higher number because they think inflation is high,” Ainina said.
The increases in interest rates are due to many things such as supply chain issues, COVID, lockdowns in China, and the war in Ukraine.