VERY TIGHT. TODAY, THE FEDERAL RESERVE VOTING ONCE AGAIN TO RAISE INTEREST RATES. THE FED BALANCING HIGH INFLATION AND TURMOIL IN THE BANKING INDUSTRY, DECIDING TO RAISE RATES BY A QUARTER POINT. KOCO’S ZACH RAEL SPOKE WITH A LOCAL ECONOMIST ABOUT WHAT ALL THIS MEANS, HOW IT WILL IMPACT ALL OF OUR WALLETS. AND HE JOINS US LIVE HERE IN THE STUDIO TONIGHT JACK. YEAH, GUYS, THAT’S RIGHT. WE’VE ALL BEEN FEELING THE STING OF INFLATION, RIGHT? JUST ABOUT EVERYTHING SEEMS TO BE COSTING MORE THESE DAYS. WELL, THAT’S WHY FOR THE NINTH STRAIGHT TIME, THE FEDERAL RESERVE HAS RAISED INTEREST RATES. YET AGAIN. WHAT IT SIGNALS FROM THE FEDERAL RESERVE IS THEY’RE STILL NOT FINISHED FIGHTING INFLATION. DR. STEVE AGEE IS AN ECONOMICS PROFESSOR AT OKLAHOMA CITY UNIVERSITY. HE SAYS TODAY’S MOVE BY THE FED TO RAISE INTEREST RATES BY A QUARTER POINT IS A BALANCED APPROACH TO FIGHTING INFLATION. AND AGEE SAYS IT’S WORKING WITH INFLATION SLOWED TO ABOUT 6%. THEY’RE DEFINITELY WORKING. AND THERE’S NO QUESTION THAT THESE INTEREST RATE HIKES ARE WORKING. INFLATION HAS COME DOWN. IN FACT, WE HAVEN’T BEEN AT THIS LEVEL OF INFLATION SINCE ABOUT SEPTEMBER OF 2021, RAISING THE INTEREST RATES MEANS IT WILL BE MORE EXPENSIVE TO BORROW MONEY IF YOU HAVE CREDIT CARD DEBT, A MORTGAGE, CAR PAYMENTS OR A LOAN, EXPECT TO PAY MORE. THAT’S GOING TO LIMIT PEOPLE FROM MAKING THOSE PURCHASES, WHICH WHAT IT’S DESIGNED TO DO. WE WANT TO SLOW DOWN THE THE RATE OF CONSUMPTION BECAUSE OF INFLATION. AND SOME PEOPLE HAVE NO OPTION BUT TO USE CREDIT CARDS TO MAKE THOSE PURCHASES. NEW DATA FROM THE U.S. CENSUS BUREAU’S HOUSEHOLD PULSE SURVEY SHOWED. 34.4% OF ADULTS IN OKLAHOMA RELIED ON CREDIT CARDS TO MEET THEIR SPENDING NEEDS, AND 21.1% HAVE INCREASED THEIR CREDIT CARD USAGE BECAUSE OF RECENT PRICE INCREASES. NATIONALLY, 20.9% SAY THEY HAVE INCREASED THEIR CREDIT CARD SPENDING. IT’S GOING TO BE PAINFUL FOR A WHILE, JUST BECAUSE THEY RAISE RATES TODAY. DOES IT MEAN TOMORROW? INFLATION RATES ARE GOING TO COME DOWN TO 3%? THEY’RE GOING TO CONTINUE TO COME DOWN SLOWLY OVER TIME. AND EXPERTS SAY THAT THE BEST THING THAT YOU CAN DO TO DEAL WITH THESE INCREASED RATES ARE TO PAY OFF ANY DEBTS THAT YOU HAVE EARLY
Oklahoma economist provides insight as Federal Reserve votes to raise interest rates
For the ninth-straight time, the Federal Reserve has raised interest rates.
Updated: 10:18 PM CDT Mar 22, 2023
An Oklahoma economist provided insight as the Federal Reserve voted to raise interest rates.For the ninth-straight time, the Federal Reserve has raised interest rates. "What it signals from the Federal Reserve is they are still not finished fighting inflation," said Steve Agee, an economics professor at Oklahoma City University.Agree said the move to raise interest rates by a quarter point is a balanced approach to fighting inflation. Agree said it’s working, with inflation slowed to about 6%."They are definitely working. There is no question that the interest rate hikes are working. Inflation rights have come down. We haven’t been at this level of inflation since September 2021," Agee said.Raising the interest rate means it will be more expensive to borrow money. If you have credit card debt, a mortgage, car payments or a loan, expect to pay more."That is going to limit people from making those purchases. Which is what it is designed to do. We want to slow down the rate of consumption," Agee said.Because of inflation, some people have no option but to use a credit card to make purchases. New data from the U.S. Census Bureau’s household pulse survey showed 34.4% of adults in Oklahoma relied on credit cards to meet their spending needs and 21.1% have increased their credit card usage because of recent price increases.Nationally, 20.9% said they have increased their credit card spending."It’s going to be painful for a while. Just because they raised rates today doesn’t mean tomorrow inflation rates go down to three percent. They will continue to come down slowly over time," Agee said.Experts said the best thing you can do to deal with these increased rates are to pay off any debts you have early, especially those credit cards.Top HeadlinesCash donations gone after mobile delivery driver makes swipe at Choctaw restaurantOne of nation’s largest food distributors shuts down system, impacting Oklahoma restaurantsKingston residents, church still rebuilding one year after tornado hitOKC Broadway announces lineup for 2023-24 seasonOklahoma Supreme Court says women have right to abortion if their life is at riskNative Oklahoman recognized at White House for work in education
OKLAHOMA CITY — An Oklahoma economist provided insight as the Federal Reserve voted to raise interest rates.
For the ninth-straight time, the Federal Reserve has raised interest rates.
"What it signals from the Federal Reserve is they are still not finished fighting inflation," said Steve Agee, an economics professor at Oklahoma City University.
Agree said the move to raise interest rates by a quarter point is a balanced approach to fighting inflation. Agree said it’s working, with inflation slowed to about 6%.
"They are definitely working. There is no question that the interest rate hikes are working. Inflation rights have come down. We haven’t been at this level of inflation since September 2021," Agee said.
Raising the interest rate means it will be more expensive to borrow money. If you have credit card debt, a mortgage, car payments or a loan, expect to pay more.
"That is going to limit people from making those purchases. Which is what it is designed to do. We want to slow down the rate of consumption," Agee said.
Because of inflation, some people have no option but to use a credit card to make purchases. New data from the U.S. Census Bureau’s household pulse survey showed 34.4% of adults in Oklahoma relied on credit cards to meet their spending needs and 21.1% have increased their credit card usage because of recent price increases.
Nationally, 20.9% said they have increased their credit card spending.
"It’s going to be painful for a while. Just because they raised rates today doesn’t mean tomorrow inflation rates go down to three percent. They will continue to come down slowly over time," Agee said.
Experts said the best thing you can do to deal with these increased rates are to pay off any debts you have early, especially those credit cards.
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