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Pros And Cons Of Federal Rate Hike

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In the event of a federal rate hike, in mid-December, there will be many pros and cons. Some of the pros include higher interest rates for savers and more interest income for retirees. A rate hike could also help people who are on-the-fence about buying a house get off the fence. It could also help to strengthen the dollar bill and might lead to a slight jump in bank loans. The con that people are most worried about is a higher interest rates on loans. People are also worried about a rise in inflation. Finally, people are worried about losing value on their bonds since the interest price cannot change. These are just some of the things people are thinking about as the rates hike for the first time in nearly a decade.

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