BUSINESS + ECONOMY

Interest rates go up, but not as bad as expected

Jan 14, 2019, 1:59 PM
interest rates 2019 school fees...
Getty Images

SALT LAKE CITY — Interest rates are expected to go up this year, but not too quickly nor by too much, experts tell KSL in the final part of our series, “Your Money in 2019.”

About 40 years ago, fluctuation with interest rates wasn’t uncommon. Now, Wall Street goes up or down on whatever word comes from the Federal Reserve about interest rates.

Bankrate analyst Greg McBride thinks there will only be two rate hikes this year: one in the spring and another in the fall.

“I think we’re going to get away with the cadence of expecting a rate hike every three months like clockwork… as has been the case the past couple of years,” McBride says. “I think instead the Fed raises interest rates a couple times this year, but they’re probably a little more spread out.”

McBride says what that likely means for the average American is that it will cost more to borrow money – for example, to refinance a home or get a car loan.

“Rates are still incredibly low, compared to what they can be or what they have been historically,” Shane Stewart, a financial planner with DMBA, says.

Like the tire in your car, Stewart says the economy needs to be inflated properly in order to avoid hyperinflation.

“Things would be going so well that goods and services would be too expensive and go up too much,” Stewart says.

China, too, has a role to play, according to University of Utah finance professor Scott Schaeffer. He says a slowdown in China’s economy reduces demand for American goods and services.

“Right now, it’s not clear whether the Fed has reached a point in combination with weakness in the global economy where it’s going to say, ‘These rates are good,’ or whether there’s going to be continued increases,” Schaeffer says.

For now, experts say it’s a good time to pay down variable interest debts like credit cards and open an interest-bearing savings account — before the next rate hike.

 

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Today’s Top Stories

Business + Economy

humane society...
Elizabeth Weiler

Humane Society of Utah says to adopters “come one, come all”

The Humane Society of Utah says their shelters are filling up, especially with large breed dogs and puppies.
15 hours ago
The Federal Reserve unanimously approved a quarter-point interest rate hike Wednesday, slowing the ...
Nicole Goodkind, CNN

Fed approves small rate hike, nodding to improved inflation outlook

The decision comes after months of large rate increases intended to cool the economy and marks a return to a more traditional interest-rate policy.
15 hours ago
Powerade is hoping that a revamped recipe and new look will help finally unseat Gatorade from the t...
Danielle Wiener-Bronner, CNN

Is that Gatorade? Or Powerade? It may soon be hard to tell.

Powerade is hoping that a revamped recipe and new look will help finally unseat Gatorade from the top spot in the sports drink arena.
15 hours ago
FILE -- This Nov. 15, 2020 photo shows a long row of unsold used Highlander sports-utility vehicles...
Britt Johnson

Used car prices dropping but supply still low

The prices of used cars are starting to fall in Utah, however, dealers are seeing a very low supply of used cars.
2 days ago
Homes line the horizon in Daybreak in South Jordan on Wednesday, July 13, 2022. The world's populat...
Allessandra Harris

South Jordan could see new housing development

Amid Utah's housing crisis, developers are taking advantage of over 200,000 acres in South Jordan for a new housing community.
3 days ago
A hiring sign is displayed in the window of a Panera Bread store in Pittsburgh on Monday, Jan. 23, ...
Paul R. La Monica, CNN

Jobs report to give further clues about where economy is headed

Economists predict that 185,000 jobs were added last month, a slowdown from the gain of 223,000 jobs in December and 263,000 in November.
4 days ago

Sponsored Articles

Banner with Cervical Cancer Awareness Realistic Ribbon...
Intermountain Health

Five Common Causes of Cervical Cancer – and What You Can Do to Lower Your Risk

January is National Cervical Cancer Awareness month and cancer experts at Intermountain Health are working to educate women about cervical cancer, the tests that can warn women about potential cancer, and the importance of vaccination.
Kid holding a cisco fish at winterfest...
Bear Lake Convention and Visitors Bureau

Get Ready for Fun at the 2023 Bear Lake Monster Winterfest

The Bear Lake Monster Winterfest is an annual weekend event jam-packed full of fun activities the whole family can enjoy. This year the event will be held from January 27-29 at the Utah Bear Lake State Park Marina and Sunrise Resort and Event Center in Garden City, Utah. 
happy friends with sparklers at christmas dinner...
Macey's

15 Easy Christmas Dinner Ideas

We’ve scoured the web for you and narrowed down a few of our favorite Christmas dinner ideas to make your planning easy. Choose from the dishes we’ve highlighted to plan your meal or start brainstorming your own meal plan a couple of weeks before to make sure you have time to shop and prepare.
Spicy Homemade Loaded Taters Tots...
Macey's

5 Game Day Snacks for the Whole Family (with recipes!)

Try these game day snacks to make watching football at home with your family feel like a special occasion. 
Happy joyful smiling casual satisfied woman learning and communicates in sign language online using...
Sorenson

The Best Tools for Deaf and Hard-of-Hearing Workplace Success

Here are some of the best resources to make your workplace work better for Deaf and hard-of-hearing employees.
Team supporters celebrating at a tailgate party...
Macey's

8 Delicious Tailgate Foods That Require Zero Prep Work

In a hurry? These 8 tailgate foods take zero prep work, so you can fuel up and get back to what matters most: getting hyped for your favorite
Interest rates go up, but not as bad as expected