Fed Rate Hike Could Push Holiday Costs Higher—Plan Ahead

The Federal Reserve lifted its benchmark rate by 0.25 percentage points to 3.75%–4% — the first hike in three years — which could make financing holiday purchases more expensive as credit-card rates rise. With inflation still elevated and consumer caution evident (credit-card debt up about 4.5% year-over-year; August retail sales up 1.2%; holiday gift budgets down about 1.8%), savers may benefit from higher yields and shoppers are advised to save in high-yield accounts, wait for promotions, and keep borrowing within budget to avoid post-holiday debt.