WICHITA, Kan. (KSNW) — Interest rates are on the move again. The Federal Reserve approved another .75% point interest rate hike on Wednesday. This is the sixth rate hike made by the Fed this year. This is its attempt to slow down inflation.
Financial experts say there are things you can do to ease the increase, like prioritizing debt, paying off your credit cards timely, and shopping around for the best loan rates.
Some families are still concerned.
“It is overwhelming. I’m making it but just barely,” said Marjorie McClintock.
“It’s horrible. Especially, for like mothers and stuff like me, some people need to get two or three jobs just to manage,” said Talissia Moore.
“If you need other loans, other investments, you need to think a little bit more carefully about what was the value of that loan versus the cost. So I don’t think it’s going to change too dramatically when most people have been watching this,” said Jeremy Hill, director of WSU’s Center for Economic Development and Business Research.
The constant increases have some wondering if a recession is coming.
“They want to scare us into a recession because if they scare us into recession, all of a sudden, they’ll put a pause. Firms will then be able to clean up all the supply chain issues, clean up their lack of employment, they’re trying to get more employees. A bit of cleanup on those issues would help put us in a better position,” Hill said.
If you haven’t already, financial advisers are stressing you budget your funds.
“I try and do my budget once a month because as things get more expensive, costs more money. Typically not always your income goes up with that. But some of the things people need to consider is maybe some of their savings accounts. They can maybe go to get better rates that are out there as the Fed raises rates,” said Matt Goolsby, Market Advisory Group adviser.
Hill says people should get used to the higher costs “because the reality is this is going to come and stay at some level, and it’s not going to go away. So we have to get used to it and readjust our visions around it.”
If there is a recession, Hill says it should not impact jobs since inflation is currently caused by a supply chain issue, not a demand issue. He added Kansans should be ok since many of our sectors are doing well.