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Mortgage rates and car loans will go up because commercial banks will raise their rates too. They reached their decision overnight signaling confidence in the u. S. Economy and job market. They released a statement after a twoday meeting. They raised their rate from 0. 25 to 0. 5 on thursday. Its a first increase in almost a decade. The labor market has shown considerable improvement this year and Economic Activity has been expanding at a moderate pace. Fed chair janet yellen said the decision reflects the committees confidence that the economy will further strengthen. She also stressed they would monitor economic conditions. With the economy performing well and expected to continue to do so, the committee judged that a modest increase in the federal funds rate target is now appropriate. Recognizing that even after this increase, Monetary Policy remains accommodative. For insight lets go a specialist in new york. We asked eric norland about the rate hikes likely effects on the u. S. Ec

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