Last year, the Fed increased interest rates for the first time in a decade, and they are meeting again to decide what will be the next move. USA Today staffer Michael Rowand explains the positives and negatives of rising interest rates for Baby Boomers, Generation Xers and Millennials.
Rowand explains that whether interest rates are good or bad depends on whether you're borrowing or saving. While Boomers will be saving and can benefit from increased interest rates, Millennials are on the other side of the spectrum :
For the Millennial generation, there’s not a lot of good news” if rates rise, Johnson says. Mortgages and car loans will be more expensive, and many Millennials will need to make larger student loan payments after federal student loan rates adjust next summer. But the degree of pain for borrowers really depends on the vigor with which the Fed raises rates.