FRESNO, Calif. (KSEE/KGPE) – In a continued effort to surging inflation in the United States, the Federal Reserve raised interest rates on for the fifth time since March.

On Wednesday, the Federal Reserve announced that it raised the benchmark short-term borrowing rates to sit between 3% and 3.25%.

Officials expect more hikes throughout the year, with the interest benchmark hitting 4%.

Experts believe that rising interest rates will bring higher borrowing costs, eventually causing people to start spending less money.

As consumers stop spending as much money, the demand for goods will decrease, causing inflation rates to fall.

Credit cards, home mortgages and auto loans rates are now expected to soar even higher as the central bank’s benchmark interest continues to rise.

According to the Federal Reserve, credit card rates in the United States are the highest they have been since 1998.

Those with a high amount of credit card debt could see higher annual percentage rates (APR) if they aren’t making their minimum payment amount on time.

As consumers across the country continue to struggle with surging inflation rates, the total household debt rose by $312 billion in the second quarter, reaching $16.15 trillion.

Throughout the year, credit card balances have also increased by $46 billion nationwide, according to a report from the Federal Reserve Bank of New York’s Center for Microeconomic Data.

Mortgage balances increased by $207 billion during the second quarter of 2022, standing at $11.39 trillion at the end of June. That’s compared to $10.44 trillion four quarters ago.

If you are expecting to get a loan to buy a car in the near future, you can expect to be hit with higher interest rates.

The current car loan rate is sitting at 5.02%, rising from 4.82% at the end of June, according to data from Bankrate.