The Federal Reserve raised its benchmark interest rate by a quarter percentage point Wednesday, its first rate increase since 2023, a move that could make some forms of borrowing more expensive while boosting returns for savers.
Key takeaways to know
- The Federal Reserve raised its target interest rate by 0.25 percentage point Wednesday to a range of 3.75% to 4%.
- Oklahoma consumers with variable-rate credit cards or HELOCs could see borrowing costs increase after the Fed’s decision.
- Oklahoma’s 30-year fixed mortgage rate was 7.13% Wednesday, but mortgage rates do not move directly with the federal funds rate.
- Higher Fed rates can benefit savers, but banks set their own rates, making it important to compare yields on savings accounts and CDs.
An Oklahoma financial expert said borrowers and investors should not necessarily move money around immediately, and said now is a good time to understand your debt, look into your savings, and get organized.
Victoria Woods is the founder and CEO of ChappelWoods Financial Services. Woods shared some practical advice for Oklahomans wondering what the Fed’s latest move means for their wallet.
Quick take from our expert:
- Know what kinds of debt will increase: Credit cards and HELOCs will go up with the Fed’s decision.
- Oklahoma savers will see benefits: High-yield savings accounts and CDs could pay savers more, but make sure you’re getting the best rate.
- Don’t rush to move your money: Woods said the energy sector is still doing heavy lifting and the right move for investors isn’t necessarily to move money right away.
What did the Federal Reserve do Wednesday?
The Fed raised the federal funds rate by 0.25 percentage points, bringing its target range to between 3.75% and 4%, its highest level since December 2025. The benchmark rate influences borrowing costs across the U.S. economy, including for credit cards, auto loans and personal loans.
In a set of quarterly projections, the Fed also signaled that its rate-setting committee expects to again raise rates later this year. The vote to raise the benchmark rate was unanimous, the Fed said in a statement on Wednesday.
What interest rate hikes mean for Oklahoma home buyers and mortgages
Woods said mortgage rates follow the bond market, not the Fed’s announcement.
Oklahoma’s 30-year fixed mortgage rate is 7.13%, according to Woods and Bankrate.
What interest rate hikes mean for credit card debt
Credit card debt is where Oklahomans will likely feel the rate hike first. Woods said Oklahomans carry an average of $6,100 in credit card debt.
“Cardholders should expect their credit card’s APR to rise a quarter-point in the next couple of months following the Fed’s move,” Matt Schulz, the chief consumer finance analyst at LendingTree, told CBS News. “Unfortunately, the higher rate will apply to current balances as well as future purchases.”
A rate increase this week would add only “a dollar or two” to the monthly bills of people carrying credit card balances, he said. But “if you’re already struggling with card debt, any increase is unwelcome,” Schulz said.
What higher rates mean for Oklahoma borrowers
Oklahomans who have a Home Equity Line of Credit (HELOC) will also feel the hike in their interest rates.
Woods said HELOCs, just like credit card debt, are tied to the prime rate.
Borrowers could see an increase in their interest payments within the next two billing cycles.
What higher rates mean for Oklahoma savers and investors
Woods said savers are the real winners after the Fed’s hike. Oklahomans could see it in their high-yield savings accounts and CDs. However, it’s a good idea to talk to your bank.
Banks determine their own deposit rates and do not automatically pass through Fed changes.
“Don’t assume your bank passes it through. Go ask,” Woods said. “If your bank is paying you 1%, somebody else will pay you 4%.”
The bottom line, Woods said, “A rate hike doesn’t wreck a good financial plan. It exposes the absence of one. Get organized, protect your assets, and let consistency do the work: because consistency will always outperform occasional brilliance.”
| Credit card interest rates | Likely to increase within 2 billing cycles. |
| Loans, Home Equity Line of Credit | Likely to increase within 2 billing cycles. |
| Mortgage rates | Mortgage rates do not move directly with the federal funds rate. |
| High-yield savings, CDs | Rates could increase; confirm with your bank |
| Investments | Reaction isn’t always best; check with your advisor and don’t panic. |
FAQ
How much did the Federal Reserve raise interest rates?
The Fed raised the federal funds rate by 0.25 percentage points, bringing its target range to between 3.75% and 4%.
What does the Fed’s rate influence?
The benchmark rate influences borrowing costs across the U.S. economy, including for credit cards, auto loans, and personal loans.
Will my credit card rate go up?
Many credit cards have variable APRs, so a higher benchmark rate can lead to higher borrowing costs. The timing depends on the card issuer and account terms.
Will Oklahoma mortgage rates automatically increase?
No. Mortgage rates do not move directly with the federal funds rate. Oklahoma’s 30-year fixed mortgage rate was 7.13% as of Sept. 16, according to Bankrate.
Will my savings account pay more?
Possibly, but banks set their own deposit rates. Bankrate reported that leading high-yield accounts were paying around 4% APY on Sept. 16 while its national average savings yield was 0.64%
Will rates go up again this year?
The Fed signaled that its rate-setting committee expects to raise rates again later this year.
CBS News contributed to this report.
This article was originally published by KOTV. You can see the original story here.