Daily Rewind: Fed hikes interest rates
The Federal Reserve raised its key interest rate benchmark today, just as investors had expected. Rates are now above 1% for the first time since the 2008 recession. Here’s what that means for your money:
- Paying off credit card debt? Buying a car? Buckle up: The Fed’s decision could directly impact your interest rates. Still, the Fed only raised rates a quarter point — and rates are still very low compared to prior decades.
- Home buyers, don’t panic: Mortgage rates aren’t going to rise immediately. However, if the Fed keeps hiking rates over the next few years, mortgage rates will eventually increase. You can take solace in the fact that 30-year mortgage rates are still very low at about 3.9%.
- Today marks the Fed’s third rate hike since December. That’s a sign the economy is healthy and growing. Unemployment hit 4.3% in May, it’s lowest level since 2001. And employers have added jobs for 80 straight months.
Other important news to know:
Republican Congressman shot in Virginia: House Whip Steve Scalise was one of at least five people hospitalized today in what sources are calling a “deliberate attack.” Scalise was shot in the hip during a morning practice for the GOP congressional baseball team. A congressional staffer, two Capitol Hill police officers, and a Tyson Foods lobbyist were also injured. All are expected to recover. President Trump said that the gunman, identified as 66-year-old James Hodgkinson, was killed. Hodgkinson was fiercely anti-Trump and a supporter of Senator Bernie Sanders’ presidential campaign. Sanders said he’s “sickened” by the attack. Read more from CNN Politics.
Want more news? Check these stories out:
*Tesla’s stock is up 75% this year (CNNMoney)
*Senate committee plans to investigate Trump’s firing of Comey (WSJ 🔔)
*Officials charged with involuntary manslaughter in Flint water crisis (NYT)
You’re all caught up for now. We’ll see you back here tomorrow!
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