Interest rate hike not expected to be felt locally

The Federal Reserve’s decision to raise interest rates is likely to have little impact on the Inland Empire economy, according to several local economists.

The increase, which was announced Wednesday, had been long anticipated. It lifts the Fed’s benchmark rate to a range of 0.5 percent to 0.75 percent, still low by historical standards, Inland Empire economist John Husing said.

“If they speed up the rate of increase, which they’ve talked about possibly doing, it could have a [negative] impact, but otherwise I don’t see it making much difference,” Husing said. “This has been coming for a long time, so people are ready for it. Much of the market has already adjusted to it.”

A home or automobile loan might be a little more expensive, but the economy should be strong enough to withstand that, said Jay Prag, professor of economics and finance at the Drucker School of Management at Claremont Graduate University.

“The economy is very strong right now,” Prag said. “Wages are going up, so people should be able to handle it.”