The Pros and Cons (Mostly Cons) of the Interest Rate Increase

The Pros and Cons (Mostly Cons) of the Interest Rate Increase
The Marriner S. Eccles Federal Reserve Board building in Washington on March 16, 2022. Saul Loeb/AFP via Getty Images
Kent McDill
Updated:

On March 16, money became more expensive.

Any time you buy something on credit, you are essentially “buying” money. You agree to pay that money back over time, but often pay interest on that borrowed money. The interest rate for that borrowing is determined using the federal reserve benchmark rate as a starting point. From there, interest rates climb based on the market and the type of credit you have received.

Kent McDill
Kent McDill
Author
Kent McDill has been a professional writer his entire career, spending 20 years as a sportswriter in Chicago before transitioning to business writing. He has written specifically about personal finance since 2013. He has four children and resides in suburban Chicago.
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