COLORADO SPRINGS — On Wednesday, the Federal Reserve raised interest rates for the sixth time this year since March.
But it was the fourth consecutive time the federal reserve raised interest rates by .75 of a percentage point this year. The first few raises weren’t as big.
Raising rates makes the monthly payments higher for cars, mortgages, and credit cards. But you might be wondering why everything is so expensive right now. I spoke with financial expert Craig Carnick about what is causing the Federal Reserve to raise interest rates. He says the nation is experiencing the highest inflation we have seen in over 40 years.
“This is the sixth increase in interest rates by the feds and their hope is that inflation will slow down. Unfortunately, there are some things contributing to inflation that the fed can’t control,” said Carnick.
Carnick went on to say that increased oil prices, increased auto costs because of car shortages, and a worldwide grain shortage because of the Ukraine War are all contributing to inflation.
Carnick says it could take years for inflation to make its way back down. But he tells me there is hope, he has been working as a financial planner for many decades and has seen the economy recover many times.
Watch KOAA News5 on your time, anytime with our free streaming app available for your Roku, FireTV, AppleTV and Android TV. Just search KOAA News5, download and start watching.