In an attempt to get 40-year high inflation under control, the Federal Reserve raised the interest rates for the second time this year.
Brian Marks, an economics and business professor at the University of New Haven, suggests Connecticut families prepare.
“We need to get our houses in order. We need to make sure we can plan and anticipate these rising rates and therefore now may be the time to pay off certain things,” said Marks.
To prepare for higher interest rates, Marks suggests people pay off credit card debt now, refinance mortgages and private student loans if they use variable interest rates rather than fixed rates, and make sure any new mortgages or car loans have fixed interest rates instead of variable rates.
The chair of the federal reserve is expected to speak Wednesday afternoon and Professor Marks suggests we all watch that very closely to get more details on how much and how long these rate hikes will continue.
“People are going to have to plan for the next 18 months, if you will, for rising rates and a potential slowing of the economy,” said Marks.