Will Interest Rates Rise in 2018?
What is the Current Rate?
Currently, the interest rate on U.S. Treasury debt is 4.75%, which is the lowest it has been since the Great Recession in 2008. During that time, the Federal Reserve kept interest rates low in an attempt to stimulate the economy. As of April 2018, the Federal Reserve is still keeping the federal funds rate at 1.50-1.75%.
Will Rates Rise in 2018?
It is difficult to predict whether or not interest rates will rise in 2018. Many experts believe that the Federal Reserve will continue to keep the rate at its current level, as the economy is still fragile and the Fed does not want to upset the markets. However, it is possible that the Fed may decide to raise the rate if the economy continues to show signs of improvement.
What Would a Rate Increase Mean?
If the Federal Reserve does decide to raise the rate, it would have a ripple effect on the economy. A rate increase would mean that the cost of borrowing money would increase, making it more difficult for people to take out loans and mortgages. It would also mean that people who have existing loans and mortgages would have to pay more in interest. In addition, a rate increase could lead to a decrease in the stock market, as investors may become more cautious with their money.
What Should You Do?
If you are considering taking out a loan or a mortgage in 2018, it is important to consider how a rate increase could affect you. If you are planning to take out a loan or a mortgage, it might be a good idea to do so before the Fed makes any changes to the rate. This way, you will be able to lock in a lower rate and save money in the long run.
Conclusion
It is difficult to predict whether or not the Federal Reserve will raise interest rates in 2018. However, it is important to consider how a rate increase could affect you if you are planning to take out a loan or a mortgage. By doing so, you will be able to make an informed decision and save money in the long run.