BERMAN: All right. Time for "CNN Money Now." The Federal Reserve is raising interest rates and hints faster hikes are on the way. What does that mean for your wallet? One person can answer that question. CNN chief business correspondent Christine Romans, in the Money Center. Hey, Romans.</s>CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT, ANCHOR, "EARLY START": Good morning, John. The Federal Reserve hiked short-term interest rates for the second time this year and penciled in four total rate hikes this year, up from three. The Fed says the economy is doing well. Most people who want jobs are finding them. Unemployment is low, inflation is healthy. And the Fed chief Jerome Powell says this move will only help.</s>JEROME POWELL, CHAIRMAN, FEDERAL RESERVE: We think that gradually returning interest rates to a more normal level as the economy strengthens is the best way the Fed can help sustain an environment in which American households and businesses can thrive.</s>ROMANS: Translation, the economy is strong enough to withstand higher borrowing costs without choking off growth, and that's what higher interest rates mean for you. Higher rates on auto loans, mortgages, credit cards. And for Wall Street, well, stocks fell. Two reasons -- higher borrowing costs could eat into corporate profits and, of course, corporate profits drive stocks. And the fact that Powell now plans to hold news conferences after every Fed meeting. Right now it's every other meeting. Investors took this as a signal that the Fed may raise rates more frequently in 2019, Alisyn. Reading the Fed tea leaves.</s>CAMEROTA: I know and you do it so well, Christine. Thank you very much. OK. So, EPA chief Scott Pruitt is facing another scandal. What now? That's next.</s>BERMAN: More lotion.
The Fed Raises Interest Rates