Funding set to get more expensive as Fed hikes interest rates

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SALISBURY, Md- The Federal Reserve is raising interest rates to fight inflation. Any debt you have will cost you more, including mortgage payments, car financing and lines of credit.
Salisbury Chamber of Commerce chairman Bill Chambers said that with less money for people to spend, the prices of consumer goods will stop rising.
He tells us that Delmarva has seen prices increase by 7% and that without these interest rate hikes, they could double by the end of the year.

“Higher interest rates will slow the economy, which will slow inflation, but it’s going to cost us in terms of lower growth and things will slow down as consumers have to postpone shopping,” Chambers said.

Chambers also says that Delmarva’s economy is always slow to respond and recover from big changes and that 2 local industries will feel this rate hike the most.

“One of the places that will be affected is agriculture as we enter the spring planting season, not the best time for them, but I think large consumables that have suffered shortages of supply, such as car dealerships, could be the second to feel this pullback in spending on wholesale-ticket items,” he said.

We are also told that these measures will not reverse inflation all at once and that the rate hike is only one of several planned for the year.
And when it comes to businesses and consumers, Chambers says it’s important to remember that interest rates were near or zero for more than 2 years.
So while these rates may seem high by comparison, we are still in a period of record cheap borrowing.

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