A Look at How Fed Rate Hike Would Impact U.S. Economy - NBC New York
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A Look at How Fed Rate Hike Would Impact U.S. Economy



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    Federal Reserve Chair Janet Yellen prepares to testify on Capitol Hill in Washington, Thursday, Dec. 3, 2015, before the Joint Economic Committee. Yellen said that economic conditions are falling into place for policymakers to raise interest rates as long as there are no major shocks that undermine confidence.

    The Federal Reserve is expected to raise interest rates on Wednesday for the first time in nearly a decade. It's expected to be a 0.25 percent hike, which is a small and anticipated increase, NBC News reported. 

    The hike will impact people in all sectors of the market, from home buyers and investors to people looking to buy cars and credit card users.

    Experts say you should prepare for volatility — and lower returns — in the stock market. Rising rates, however, will help the beleaguered savers who've seen anemic returns over the past half-decade or so. Car loan rates meanwhile, will go up with the increase in the Fed funds rate, but on a $25,000 car loan, the difference is only about $3 a month.