US consumers and businesses are now facing a future of more expensive borrowing

The Federal Reserve’s rate hike comes as the US economy is increasingly moving at two very different speeds.

By: John W. Diamond, Rice University, The Conversation

Outlets: The Conversation

Published: September 16, 2026

Words: 1,339

Last Updated: 1 month ago

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By John W. Diamond, Rice University

From mortgages to auto loans to credit cards, borrowing is set to get even pricier.

But the Federal Reserve’s decision on Sept. 16, 2026, to hike its baseline interest rate also highlighted an increasingly confounding dilemma: It can raise the price of money across the economy, but it can’t determine which sectors are most affected.

That means the rate increase may further slow the weaker parts of the …

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