Fed raises interest rate, expect added costs to be passed on to you

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Wednesday, July 27, 2022
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There are going to be added costs for people buying a car or home, which is becoming even more expensive in Wake County.

The Federal Reserve bumped up the interest rate yet again three-quarters of a point and warned that there likely will be more hikes to curtail inflation.

N.C State Economy Professor Mike Walden broke down what needs to happen.

"One rule of thumb in economics is if you take your high inflation rate--9.1%--that you have to move interest rates pretty close to that inflation rate, and we got a long way to go," said Walden.

There are going to be added costs for people buying a car or home, which is becoming even more expensive in Wake County.

A record high has been set for a median home price. It's now $470,000, which is up $8,000 in June from May.

The suggestion if you can't wing these prices is to wait it out.

"I would say put that off for a year, nine months to a year, I think the interest rates will be lower," said Walden.

Small businesses are trying to roll with the punches in this economy.

"Fuel prices have in essence doubled," said Bombshell Beer Company co-owner Michelle Miniutti.

The brewer is getting ready to raise its prices, saying it can no longer hold the line.

Not only has fuel gone up, but Miniutti said there are substantial increases in other materials such as labels, cardboard, aluminum cans, and raw ingredients.

"Our grain cost (has gone up). Of course, that's also being impacted by what's happening over in Ukraine. Our grain costs have gone up anywhere from 15 to 50 percent," she said.

A GDP report is going to be released Thursday and will offer more insight into the health of the economy.