As many expected, the U.S. Federal Reserve has hiked its benchmark interest rate a quarter of a percentage point from the current 0.25-0.50 range to 0.50-0.75 and says to expect three more rate increases over the course of 2017.
The unanimous vote is seen as a nod of confidence to the economic progress the U.S. has continued to make, though there is still uncertainty moving forward, given the ongoing White House transition and the numerous campaign promises President-elect Trump made, including plans to increase spending and cut taxes. Mortgage rates have also been on a steady rise since Mr. Trump was elected, which some economists say could be a signal that now is the time to buy or sell if you’re looking to do either one.
Today on AirTalk, Larry and two Southern California economists explore what the interest rate hikes could mean for consumers in the short and long term and take a look at the state of Southern California’s housing market.
William Yu, economist with the UCLA Anderson Forecast; his areas of expertise include the Los Angeles economy and housing market
Mark Schniepp, director of the California Economic Forecast