U.S. sees biggest increase in interest rates by Federal Reserve in nearly 30 years

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Published: Jun. 15, 2022 at 11:34 PM EDT
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COLUMBUS, Ga. (WTVM) - The Federal Reserve has increased interest rates by the biggest margin in nearly 30 years.

This time it’s by three-quarters of a percentage point in hopes of curbing inflation.

The move comes after a worse-than-expected inflation report.

The most significant interest rate increase since 1994 will impact people paying off credit, debit, student loans or car payments.

Economists hope that more people will spend less as prices for everyday items continuously go up.

Even with the increase, one economist told News Leader 9 that it may be a while before the economy turns around.

“Interest rate hikes tend to slow the economy down with a lag of about 12 months to 18 months. So, inflation is not likely to come down until the economy slows.”

Wells Fargo Senior Economist Mark Vitner says with that in mind, it could be a year before the interest rate hike impacts the economy.

In the meantime, other experts say be prepared to spend more when making minimum payments.

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