Feeling the effects of higher interest rates? Expect all borrowing to get more expensive
May 25, 2022 - Leila UginciusThe interest rate. It affects everything from the housing market and commercial real estate to employment and student loans. With inflation at a 40-year high, the Federal Reserve has raised interest rates in an effort to hamper the growth of business and consumer spending, which, in turn, could counter soaring inflation rates.
“The reduced demand for goods and services in the economy should ease some of the pressures that have been driving inflation higher in recent months,” said Christopher M. Herrington, Ph.D., an associate professor of economics in the Virginia Commonwealth University School of Business.