Banks raise rates after fed interest increase

NEW HAVEN, Conn. (WTNH)– Interest rates already going up, just a day after a hike by the Federal Reserve. It’s the first interest rate increase in almost a decade but what does it really mean for you?

The Federal Reserve raising its key interest rate by a quarter point. The range now 25% to .5%. It had been at zero since 2008 when the great recession hit. A lot of people asking: what does this increase mean for me and my family? Well, it means quite a bit.

First, the increase will impact car and home loans. As well as credit cards and the stock market. But there is a positive to all of this.

Related: Reactions mixed among business leaders over rise in interest rates

First, it signals that the economy is strong enough to handle the increase. It also beefs up the value of the dollar.

Fed Chief Janet Yellen says wage increases are also starting to show up. The finance chair at Quinnipiac University spoke to News 8 about the increase.

“I think it’s going to be positive more than negative. I think a lot of folks are going to say ‘oh the feds raised interest rates’ thank heavens they feel the economy is strong enough to stand that,” said Robert Porter, Quinnipiac University.

Keep in mind there could be more rate hikes further down the road as the economy strengthens from what it was several years ago.

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