CANFIELD, Ohio (WKBN)- Federal interest rates are still climbing at a record pace.
It’s caused financial strain for many across the country.
But some relief may be on the way.
The Federal Reserve’s raised their key rate Wednesday to 4.9%. Although this is high, signs show these hikes could stop soon.
WKBN talked to financial advisor Chris Mediate in Canfield. This most recent hike was only a quarter of a point instead of half a point. Mediate said this keeps interest rates on loans from increasing drastically. He also says the closing of Silicon Valley Bank and Signature Bank is influencing the Federal Reserve’s decisions.
“It has made the federal reserve more cautious. Basically have said now we’re probably going to maybe only have to do one more rate hike and then see where it goes and it’ll be seen whether they’re actually going to do another rate hike is all going to really depend on how serious this continues to evolve in the banking industry,” said Mediate.
The point of these hikes is to slow down inflation. The Federal Reserve mentioned the fight against inflation still has a long way to go.
Stopping the hikes is called the fed-pivot. This is a key indicator that the economy is not getting worse. A good sign for consumers in regards to inflation.
However, a big question still remains: did the hikes work? Mediate says the Federal Reserve will have to wait to find that out.
The question now is how long interest rates will stay where they’re at before dropping.