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Article: As Fed raises rates, other costs will climb; Home equity loans, credit cards affected
- Article from:
- The Milwaukee Journal Sentinel (Milwaukee, WI)
- Article date:
- September 26, 2004
- Author:
CopyrightCopyright 2004 The Milwaukee Journal Sentinel. Provided by ProQuest LLC. (Hide copyright information)
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As Fed raises rates, other costs will climb
Home equity loans, credit cards affected
When the Federal Reserve raised interest rates last week, one
ripple effect was to make home equity lines of credit -- which
consumers have flocked to over the past few years -- a little more
expensive.
The rate increase also is expected to nudge up the cost of using a
credit card for people who don't pay off their entire balance each
month.
A quarter-point boost may not seem like much at the moment, but it
is the third such increase since June, and more are expected.
Most banks immediately responded to the Fed's decision to boost
the federal funds rate last Tuesday by raising their prime lending
rate a ...