Financing to set to become more expensive as Fed hikes interest rates

SALISBURY, Md- The Federal Reserve is raising interest rates to push back against inflation. Any debt you have will get more expensive, that includes mortgage payments, financing on a car, and lines of credit business.
The President of the Salisbury Chamber of Commerce Bill Chambers says with less money for people to spend prices on consumer goods will stop rising.
He tells us Delmarva saw prices rise 7-percent and without these interest rate hikes they could double by the end of the year.

“The higher interest rates are gonna slow the economy down which in turn will slow inflation down but it’s gonna cost us in terms of lower growth and things will slow down with consumers having to put purchases off,” Chambers said.

Chambers also says the economy in Delmarva is always slow to respond and recover to big changes and 2 local industries will be feeling this rate hike the most.

“One place that will get hit is agriculture as we are moving into the spring planting season this is not the best time for them but I think large consumables that have suffered supply shortages like auto dealers may be second to feel this pullback of spending on big-ticket items,” he said.

We’re also told these measures won’t work to reverse inflation all at once and the rate hike is just one of several planned for the year.
And when it comes to businesses and consumers Chambers says it’s important to remember interest rates were near or at zero for over 2 years.
So while these rates might seem high in comparison we are still in a period of record-level cheap borrowing.