For consumers, the biggest focus is likely on inflation, which they can feel in everyday purchases. The Fed hikes will help lower prices, but not immediately, according to Goodwin at New York Life Investments.
“What they are hoping to achieve by raising interest rates is that by increasing the cost of financing they can slow demand on the margin for some of the goods and services that have seen such large increases in prices,” she said. “That process takes time.”
This article was provided by Bloomberg News.