12/16/2015 – How to Handle Your Finances as the Fed Raises Interest Rates (The New York Times)

Dec 16, 2015 Comments Off by

The Fed has set in motion a gradual increase in the federal funds rate,which is the interest rate banks and depository institutions charge one another for overnight loans. But that rate, central as it is to the making of monetary policy, has only a wobbly effect on how banks and other financial institutions price certain loans and savings vehicles. Consumers may be able to find slightly higher-yielding savings accounts and certificates of deposit, though the returns will still be meager. The cost of borrowing is expected to rise, but only slightly, with variable effects on what banks charge for credit cards, home equity lines of credit, adjustable-rate mortgages, auto loans and some student loans.

Read the full article in The New York Times.

Financial Landing 2015

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