High interest rates could be the new reality for Americans

Megan Henney / FOXBusiness

The Federal Reserve signaled during its two-day meeting last week that interest rates will remain elevated for some time, bringing to an end the era of ultra-cheap money.

Americans will be forced to adapt to a new normal where savers benefit from higher rates, but borrowers face steeper debt payments on everything from credit cards to mortgages to student loans.

“Whether the Fed does or doesn’t raise rates further in the coming months, the high rates are here to stay for awhile,” said Greg McBride, chief financial analyst at Bankrate.

Policymakers voted during their policy-setting meeting to leave interest rates unchanged at a range of 5.25% to 5.5%, the highest level since 2001. But officials also opened the door to another quarter-point increase before the end of the year – and indicated they will hold rates at those elevated levels for an extended period...Read more and see video here.