LAS VEGAS (KLAS)– As the Federal Reserve announced another ‘jumbo’ interest rate hike of .75 percent on Wednesday, many in Las Vegas shared their concerns about what this means for their money in the future.
“It’s scary,” said Cyndi Koester. “Sometimes kids have to help their parents now.”
As the economy continues to change, Koester told 8 News Now it’s been a real rollercoaster for her and her family.
“Recently we’ve taken a major hit,” she said. “And we are in safe and secure investments.”
She told 8 News Now she’s considering retirement soon, and while Koester has quite a bit of money socked away, interest rate hikes and stock market plunges have her attention.
“Inflation is out of this world right now, our costs are going up every single day.”
After the Federal Reserve announced its latest interest rate increase to curb inflation, which will ultimately impact the costs of mortgages, car loans, and credit cards, experts said it was also connected to a drop on Wall Street.
On Wednesday, the DOW and S&P 500 dropped about 500 points, respectively.
“A bit of craziness in the market,” UNLV Economics Professor Stephen Miller said.
Miller told 8 News Now this development really has the power to affect those looking to cash out their 401k, while also facing a higher cost of living.
“They are going to be hurt by this, not because of the stock market,” Miller said. “But rather because the Feds are going to be controlling inflation through aggressive policies.”
Therefore, Koester said those who have time to save should kick things into high gear and prepare for whatever comes next.
“You need to plan for yourself,” Koester concluded. “And not rely on others.”
Miller said no matter how close anyone is to retirement; he recommends a myriad of investments with different risk levels.
He said while it’s impossible to predict, he and other experts hope to see the economic climate level out by the end of 2023.