LANSING, Mich. (WLNS) – The Federal Reserve approved raising interest rates by half a percent.
It’s the seventh rate increase in a year amid high inflation.

Economic experts said these rate increases are one of the ways the fed is trying to slow a high inflation rate.

While some loans will be a bit more pricey, a Michigan State University expert said there is some good news when it comes to your savings.

The bite of high prices for consumer goods now at 7%, has people in Lansing seeing the inflation pressure differently.

“As a producer myself, I’ve seen some of the things cost me more in shipping and some of just the hardware and some of the textiles I end up buying,” said shopper Oscar Pena.

“Groceries are out of sight, I mean so yeah, it’s been very difficult this year,” said Lansing business owner Annette Bruce.

The Federal Reserve raised interest rates by half a percent to slow down that pricing. That follows a year of steeper hikes that reached a third of a percent.

SEE MORE: Federal Reserve raises its key rate for 7th time this year

Eric Scorsone with Michigan State University said the rate increases affect short-term loans between banks but indirectly affect the loans you get for homes, cars and even credit cards.

“This means everything is going to cost you more when you borrow money because the fed is trying to fight inflation, trying to slow the economy down,” said Scorsone.

On the storefront, members of the Michigan Retailers Association said despite high costs, they saw an improvement in credit card sales of 4% compared to other years during Black Friday weekend.

But association leaders said sales could be better.

“When inflation is high, people are not making those purchases. They are not buying that extra gifts. They are not going out to eat. They are not buying sweaters for the holidays. They are making due with what they have,” said MRA Communications VP, Andrea Bitely.

As shoppers swipe at registers, Scorsone said that credit balance can be more than you bargained for.

“If you carry a balance on your credit card, it’s going to cost more. Likely they are going to have higher rates. “

But he said there’s an upside for savings.

“What happens is as interest rates go up, it affects what it costs to borrow. But it also affects if you have a savings account, a certificate of deposit or anything like that. You’re going get more money,” said Scorsone.