On Wednesday, June 15, the Federal Reserve raised interest rates by three-quarters of a point. The .75 bump, which is meant to slow inflation and prevent the U.S. economy from entering a recession, is the largest increase since 1994.
Millikin Professor of Finance and Business, Chris Marquette, spoke with WAND’s Alyssa Patrick in an interview about the increased interest rates. He said that it could possibly take months for overall inflation to slow down.
“In terms of inflation, and the economy, perhaps three to five months.”
Despite this timeline, many Americans will feel the impact of increased interest rates immediately with higher credit card interest rates and higher mortgage rates.
Marquette added that there may be an end in sight to current inflation trends. “Inflation does seem to be starting to peak. We are seeing the consumer starting to back off on purchases, which leads to lower inflation.
Additionally, Marquette commented that Americans should expect to see an increase of .25 later this summer and in early fall.
Source: https://millikin.edu/federal-reserve-raises-interest-rates
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