The Fed's Rate Decision and Its Impact on Consumers and Stocks

The Federal Reserve is expected to pause hiking interest rates at the conclusion of Wednesday’s meeting, but Americans are unlikely to see any relief as borrowing rates for variable rate debt such as credit cards and home equity lines of credit have increased in step with the Fed’s 10 previous interest rate hikes. Elevated inflation and a strong labor market mean the Fed is nowhere close to cutting interest rates, so borrowers will continue to be dealing with high interest rates for months to come, even if the Fed doesn’t hike rates further. Paying down high cost, variable rate debt is an urgent priority for households.