'Patience is the best thing': Local financial experts weigh in on Federal Reserve rate hike
RALEIGH, N.C. (WTVD) -- In an effort to fight inflation, borrowing costs are expected to increase as the Federal Reserve raised interest rates by 0.75%
It's the third federal interest rate hike in 2022 and the largest increase since 1994.
"Today, the FMOC raised its policy interest rate by three-quarters of a percentage point and we anticipate that ongoing increases will be appropriate," Federal Reserve Chairman Jerome Powell said.
Powell said Americans should embrace "pains" tantamount to higher interest rates on credit cards and likely job losses among other effects.
"It's all of those things. If higher interest rates, slower growth, and a softening labor market are all painful for the public that we serve, but they're not as painful as failing to restoring price stability," Powell said.
According to financial experts, people like Abby Gerry will need a plan to tackle her debt.
"Well, I do have to pay the money, you're correct. But if I don't think about it, you know, it might just go away," Gerry said.
That isn't likely to happen.
"It'd be nice if there were a way to wish it away, but there isn't," Powell said.
Gas prices increased for the first time in 100 days, grocery bills continue to skyrocket, and mortgage rates keep climbing.
Wealth advisor Conely Perry said families can weather this time by having a plan and hope.
"You have to tighten your ship a little bit," Perry said. "Those who feel like they don't have hope or have a chance to meet some of those goals, you know, patience is the best thing. It's going to turn around someday."
Powell contended said the economy can get back to 2018, 2019, and 2020 levels under former President Donald Trump, when the financial outlook for Americans looked much better than it does now.
"We want to get back to that. But to get there, we're going to have to get supply and demand back in alignment. And that's going to take tight monetary policy for a period of time," Powell said.
