Fed raises key rate by quarter-point despite bank turmoil, How does it affect South Carolina?

(AP) - The Federal Reserve extended its year-long fight against high inflation Wednesday by raising its key interest rate by a quarter-point despite concerns that higher borrowing rates could worsen the turmoil that has gripped the banking system.

“The U.S. banking system is sound and resilient,” the Fed said in a statement after its latest policy meeting ended.

At the same time, the Fed warned that the upheaval stemming from the fall of two major banks is “likely to result in tighter credit conditions” and “weigh on economic activity, hiring and inflation.”

WIS’ Greg Adaline and Billie Jean Shaw sat down with financial advisor Patrick Strubbe to talk about how the increase will affect residents right here in South Carolina.

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