In Case You Missed It

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ICYMI: Interest Rate Increases Coming This Month

In case you missed it, the Federal Reserve is moving forward with its plans to raise interest rates this month, despite the impacts of Russia's invasion of Ukraine.

Testifying before Congress this week, Federal Reserve Chair Jerome Powell said it would be "appropriate" to raise interest rates in March. And in an unusual turn, the Fed Chair testified that he would support a hike of 25 basis points (or 0.25%). Powell usually avoids stating such specifics in his testimonies and answers.

Raising interest rates is one of the main tools the central bank uses to reduce inflation. It makes borrowing more expensive for all of us (like for a mortgage or a car loan), so people tend to buy less in higher interest-rate environments. That helps slow down the economy and cool inflation.

Investors had thought the Federal Reserve might delay its interest rate hike, with the Russia-Ukraine crisis impacting stock markets and the economy. But with a strong labor market (more jobs were added in February than expected) and a resilient economy, the Fed's case to raise interest rates is a strong one.

- Kristin

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Off the Charts

While most people with student loans would like to see at least some loan forgiveness, even many without something at stake are in favor of it, according to a recent poll of voters conducted by Data for Progress, a left-leaning research group, and the Student Borrower Protection Center, which advocates for borrowers.

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