The Fed Raises Rates: What does it mean for the average person?

On Wednesday, 12/14/2022, Jerome Powell, chair of the Federal Reserve, announced that interest rates are going up again. This time by 0.50 points taking it to a new targeted range between 4.25% and 4.5%:

Source: CNBC

The constant raises have been standard practice in 2022, and it’s the government’s attempt to control inflation, among other things.

So, what does it mean for people like us? For the average person?

The short story is that interest rates across the board will also increase.

All types of debt involving variable interest rates will rise, including mortgages, car loans, credit cards, and so on.

It is a great time to get aggressive in paying off credit card debt and any other type of consumer debt you may have lingering around.

With that said, at least one “silver lining” is that online banks will likely continue to raise their rates. The increase is excellent news for your emergency fund or any money you need to keep liquid.

Notice that I said online banks.

Brick-and-mortar banks continue to live in ancient times. Regardless of how often rates increase, they aren’t doing anyone any favors.

With that said, here are my two favorite online banks:

C.I.T Bank Savings Connect: Currently pays 4.05% interest
*C.I.T is not affiliated with Citibank. It is an entirely different institution.

Marcus by Goldman Sachs: Currently pays 3.30% interest

*Rates above have been updated as of 01/31/2023*

Regarding the stock market:

The truth of the matter is that the market does not like uncertainty. In a way, the constant interest rate increases are telling Wall Street that we’re still working on getting the economy on the right track and that we’re not there yet. We might continue to witness constant volatility and fluctuations in stock market performance.

With that said, remember that as long-term investors, our focus is to continue to invest in quality and to be patient. Day-to-day fluctuations should not worry us. However, if you recently started investing and this is all making you uncomfortable, feel free to email me ( I’d be happy to share some words of wisdom that can provide peace of mind :).

And that’s all, folks! Questions? Comments? Feedback? Let me know below.

Cheers to health and profits,


Resources for beginners:

Ready, Set, Invest: A Step by Step Workshop on Being READY to Invest


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