The Federal Reserve raised interest rates Wednesday for the first time since 2023, but that won’t mean the mortgage rate or car loan you’ve been eyeing will suddenly shoot up.
Fed action is one piece of the puzzle in how banks determine loan rates and could contribute to a trend of interest rates slowly rising over time
Fed rate changes often have a more direct effect on shorter-term loans, or loans with variable rates, such as adjustable-rate mortgages. Those rates can move up and down as the Fed’s rate does.
I watched a scary video the other day on debt and how the system was set up by bankers to make them wealthy. In short, no one expects that debt - national or personal - will ever be paid off. The point is the interest payments which are the financiers' source of income.
ReplyDeleteBecause there is something terribly wrong about a system where non-existent wealth in the form of debt exceeds actual wealth.