How Fed hike will affect U.S. consumers and overseas economies – Nevada News

How Fed hike will affect U.S. consumers and overseas economies – Nevada News

Elise Amendola / AP

In this March 6, 2017, file photo, home equity and auto loan rates are displayed at a bank in North Andover, Mass. The impact of the Federal Reserve’s fourth interest rate hike in 18 months will range widely for individuals and businesses with loans or income-producing accounts. People with adjustable-rate mortgages or home equity lines of credit will soon pay more, but most would-be home buyers needn’t worry. And auto loan rates won’t likely change much.

WASHINGTON — Credit card holders will soon pay more. So will people with adjustable-rate mortgages or home equity lines of credit.

But most would-be home buyers needn’t worry. And auto loan rates won’t likely change much. For savers? Rates should creep up, at least for the highest-yielding CDs and saving accounts, though on average they’ll still pay a pittance.

The cumulative impact of another Federal Reserve interest rate hike — its fourth in 18 months — will range widely for individuals and businesses with loans or income-producing accounts.

And the consequences range beyond U.S. shores. A series of Fed hikes generally means that overseas investors in search of interest income can increase their returns by shifting money into the United States. Higher U.S. rates also tend to cause an outflow of capital from developing countries that can ill-afford it.

The most immediate effects, though, are generally on borrowers in the United States. When the Fed lifts the short-term rate it controls by one-quarter of a percentage point, as it did…

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