Fed Announces Interest Rate Hike
According to Federal Reserve chairman Jerome Powell, the economy's too hot, inflation too high and so in response Wednesday, the committee raised the federal fund rate by 3/4 of a percentage point. What do those higher rates mean for farmers and traders?
USDA Chief Economist Seth Meyer said typically in the past.
"Rising interest rates in the United States strengthens the dollar, makes us a little less export competitive," making U.S products more expensive for foreign customers to buy.
But Meyer was quick to point out that's what "typically happens. And then for farmers who depend on credit for day-to-day operations, "If you're gonna go in and borrow, you're gonna see the rate increases. And if consensus is right, that rate will continue throughout the year."
It remains unclear at this time if the Fed will increase rates again at their September meeting.
If you have a story idea for the PNW Ag Network, call (509) 547-1618, or e-mail firstname.lastname@example.org