Federal Reserve to discuss raising interest rates in March

CEDAR RAPIDS, Iowa (KCRG) - The Federal Reserve will meet in March to discuss raising interest rates for the first time since the start of the pandemic. This is an effort by the government to fight inflation. The U.S. saw inflation at its highest rate in 40 years.

“When the Federal Reserve raises interest rates, what they’re trying to do is slow down the economy a little bit, we’ve seen some inflation, they’re trying to get that tamp down a little bit,” said Matt Hylland, Financial Planner with Arnold and Mote.

Hylland says this rise in interest rate is not a huge deal for the average consumer.

The Federal interest rate is currently .25%

“They are and have been artificially too low for too long. And it’s one of the reasons one of the factors, that has caused a very low inventory,” said Matt Ford, Skogman Realty Cedar Rapids.

Ford says it is unclear how much the fed raising interest rates will impact the housing market till we see just how much rates will go up.

“The big thing is when the interest rates go up, it affects your buying power as a buyer,” said Ford.

Hylland doesn’t recommend these potential interest rate increases change any big plans for consumers.