The Federal Reserve once again increased its benchmark interest rate this Wednesday, bringing the federal funds rate to a range of 5% to 5.25%. This marks the 10th consecutive raise since the hike began in mid-2017.

The announced hike will have an impact on the American economy, with further implications for an array of different industries. Most likely, the primary result of this shift in the federal funds rate will be an increase in borrowing costs for consumers, as banks and credit card companies respond to the Federal Reserve’s announcement. For example, credit card interest rates are expected to rise as a result, meaning Americans should be especially conscious of their credit card spending.

At the same time, the mortgage industry is also set to be impacted. Higher mortgage rates will likely be a result of the rate hike, which will shape the markets for current and future homeowners. Loan origination costs may also rise, so individuals already in the process of buying a home should be aware of the situation and have their finances prepared.

The following are key points of the Fed’s decision:
• The federal funds rate increased from a range of 4.75% to 5.00% to a range of 5.00% to 5.25%.
• The increase in the federal funds rate will likely lead to higher costs for borrowers across industries.
• Home buyers should be aware of the situation and prepare their finances accordingly.
• Loan origination costs may also increase as a result of the shift.

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