(RoyalPatriot.com )- The Federal Reserve decided to increase the benchmark federal funds rate by 75 basis points for the third consecutive month on Wednesday.
The U.S. central bank is implementing the most ruthless interest rate increases in decades to curb inflation.
In an interview with reporters about the rate hike, Fed Chair Jerome Powell acknowledged that it is now possible for a recession to occur and that securing a soft landing will be “very challenging.” However, he cautioned that no one could predict whether the tightening campaign would result in a downturn or its severity.
Additionally, Fed officials presented a brisk path of rate increases for the rest of the year.
Following the two-day meeting, new economic forecasts showed that policymakers anticipated interest rates to reach 4.4% by the end of the year, indicating that another three-quarter percentage point hike was possible.
According to Bankrate’s most recent poll, the average credit card rate as of August 31 was 17.96%, the highest level in decades.
This is up 10.8% from the average of 16.21% in August last year and up 3.5% from the reading for July.
In this situation, American customers must manage their credit card debt, so FOX Business turned to personal finance guru, an eight-time national bestseller, and host of “The Ramsey Show” Dave Ramsey for advice.
Ramsey provided simple and helpful facts and guidance for American customers regarding the significant credit card debt that many Americans carry from month to month, as well as the prevalent ways that individuals are utilizing their credit cards today.
He said your budget’s top four lines are what they refer to as its “four walls” – food, utilities, housing, and transportation. Therefore, you must ensure that your income covers those four expenses before spending money on anything else.
Period, he added.
He said that It’s worrisome that people these days are utilizing credit cards to cover their ‘four walls. There has been a 13% increase in credit card balances since the first quarter of this year.
He said placing living expenditures on a credit card is a short-term fix that results in an unsustainable long-term issue.
