Transcript for Fed hikes interest rate 0.25% amid banking fears
- We're following the markets this morning and the ninth interest rate hike within a year. The Federal Reserve raising the rate despite growing banking concerns. Chief economics correspondent Rebecca Jarvis live on Wall Street with the market reaction. Rebecca, Good morning.
- Good morning to you, Whit. And these aggressive rate hikes are all in an effort to bring down inflation, which has remained stubbornly high. Though it's easing a bit, it's still costing American families about $395 more every month on the same goods and services. So here's what it means for you in terms of your own borrowing costs.
That 0.25 percentage point increase yesterday by the Fed means your credit card bills, those credit card APRs are going up. From a year ago, they were about 16% on average. Today, they're already 20% if you're carrying a big balance. Most American families, the average is now $6,000. Your best bet is to consolidate on a 0% and do a bank transfer onto a 0% credit card.
Mortgage rates also are climbing. We've seen them go from about 4% to 7%. Same thing is true for your auto loans. And the most important thing, guys, you can do here is shop around. Freddie Mac estimates it could save you as much as $600 to $1,200 a year on that mortgage. Guys.
- Shop around. All right there, Rebecca. Thank you.
This transcript has been automatically generated and may not be 100% accurate.