WICHITA FALLS (KFDX/KJTL) — The Federal Reserve announced another hike in interest rates, this time by three-quarters of a percent. Experts said it’s due to the hot inflation happening in the United States.

Interest rates are the highest they have been in 40 years.

Financial Advisor and founder of Personal Money Planning Gary Silverman said he saw this coming and said people should be prepared for more.

“We knew that the Federal Reserve was going to raise rates, and they have already, but by smaller amounts; within the last few weeks, we knew a bigger rate hike was coming, so it wasn’t a big surprise when it happened,” Silverman said. “We would not have predicted it two years ago, but with inflation where it is now, it was obvious a Federal Reserve was going to raise rates, and some of that was already priced into both the stock and the bond markets – both which will tend to move when the Federal Reserve raises rates.”

There were many factors that contributed to the Fed increasing interest rates, from Russia’s war in Ukraine to last year’s Covid-19 lockdowns.

“The idea is: we are dampening down inflation, or at least we are trying to dampen down inflation,” Silverman said. “This also does not happen instantaneously; this is going to take a while for the inflation to dampen down, and you may see further federal increases to try to get ahead of it as well.”

As the costs for food, gas and house prices keep rising, many people here in Texoma are seeing the effects.

“It has a strong impact on us, also, like common people, the wages are not enough to cover all the expenses, you know, every day,” Wichita Falls resident Omar Farooq said. “Rents, rates go up everywhere, you know, grocery, Walmart, you know, everything.”

One of the struggles Farooq faces today is to provide medication for his mom.

“A lot of medications which are good are very costly, so we have compromised health on that part, and a lot of people going the side ways to pharmacies, so my mom has a health issue, so we are looking to other alternatives,” Farooq said.

A resident who has been working in the medical field for 25 years said the situation is making her question if she should retire.

“The economy in general, how the inflation is affecting the stock market, and I’m closer to the retirement age, so I see my retirement account already half-depleted, so now I’m going to extend my work life more,” Wichita Falls resident Rabia Khan said. “So instead of retiring a year from now, I may have to work another five years, so that’s how it is affecting me.”

People like Omar and Rabia are hopeful the U.S. will come out strong from this and hope for better solutions that will benefit everyone.