All signs point to the Federal Reserve ordering another interest rate hike as it concludes two days of meetings Wednesday.
“Unlike the first and second rate hike where there was twelve months between them–here we are just three months after the last rate hike and the Fed is going at it again” Bankrate’s Greg McBride told KTSA News, convinced all of the factors are there in justifying an increase this time around.
“We continue to see job growth…. even income growth has picked up a little bit. All of the signs are there for the Fed to push interest rates a little bit higher” McBride said.
He also said there’s one type of debt in particular you need to focus on as the Fed begins the interest rate climb.
“Variable rate debt is the real exposure… this is everything from credit cards to home equity lines of credit to adjustable rate mortgages. That’s what really warrants the attention” McBride said, advising that such debt either be locked in to one constant rate–or quickly paid off.
Meanwhile, McBride said this will probably not be the last interest rate hike we’ll see from the Federal Reserve this year.
“A rate hike in March, and I think expectations would then guide toward perhaps another move in June. That would likely be the soonest they would move again” McBride said.