Federal Reserve rate hike not in small business best interest

The Federal Reserve raised a key interest rate Wednesday by a quarter of a percentage point. One small business owner said that increase adds up when it comes to using credit to restock her lounge.

“For sure it’s going to affect us,” Mis Amores Lounge owner Patrice Santiago said.

Santiago said she is already fed up with credit card interest rates.

“We’ve seen how it goes up and down so we try to avoid using that credit,” Santiago said.

She said the Federal Reserve rate hike isn’t going to make stocking these shelves any cheaper when using credit. one financial advisor agrees.

“When the Federal Reserve raises rates, anything that you are paying interest on has the potential to go up,” Cathy Brown, president of CB Wealth Management Group said.

Brown said the quarter of a point increase isn’t enough to raise major concerns but it’s a reason to keep a watchful eye on finances.

“If you need to take out a mortgage or if you have an adjustable rate on your mortgage, you’re going to see rates go up. If you have credit cards and you don’t pay those off in time, you will probably see about a quarter of a percent increase in the amount that you are paying on your credit card debt,” Brown said.

For small businesses, like Mis Amores Lounge in Palm Desert, using a business credit card can come in handy when refreshing stock.

“If you look at your bill and you said, ‘oh, that’s not that much’ but if you add everything up at the end of the year it does make a big difference,” Santiago said.

Santiago said she’s making it her business to use cash for her inventory.

Brown said there is one positive outcome from this rate hike, people who save money in savings accounts could also, see an increase in their interest rate.