Federal Reserve Announces First Fed Rate Increase in Nearly Four Years

 

In an attempt to head off rising inflation, the Federal Reserve announced today that it is increasing the federal funds rate by a quarter of a percentage point, the first such increase in nearly four years. The increase will make it more expensive for depository institutions to borrow money and will lead to increases in credit card rates, auto loan interest rates, etc., helping to drive down demand. Although home mortgage interest rates in Georgia and around the country are more closely linked to the 10 Year Treasury Yield than to the federal funds rate, Atlanta area real estate experts expect home mortgage interest rates to rise in the coming months.

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